Oil Monitor as of 05 August 2019


WORLD OIL PRICES  (July 29 - August 2, 2019 trading days)

Dubai crude has slightly increased week-on-week by around US$0.05 per barrel. MOPS diesel has also increased by almost US$0.20 per barrel, while no movement was reflected on the price of MOPS gasoline.

Reasons for the Adjustment

  • The demand for crude is seen to increase during August as refinery downtime reaches a low point for the year to date.  Crude runs during August will be at the high point of the year so far.  The fall turnaround season is coming up and with it more downtime and lower runs compared to the August peak level.  New refining capacity has been coming online with  the  pace  increasing  toward  the  end  of  the  year,  outdoing  the  growth  in  annual adjusted  demand.  Refining margins have improved and will further increase later this year in preparation of IMO 2020.  (Source:  PIRA, August 1, 2019) 

  • President Donald Trump announced the US will impose a 10% tariff on $300 billion worth of Chinese goods September 1, when trade talks between the two countries resume.  The tariff escalation, while scaled back from Trump's earlier threat of a 25% tariff, could spur a fresh round of retaliatory tariffs by China.

    • Trump's tariff announcement ratcheted up pressure on the relationship between the world's biggest trading partners, a day after US-China trade negotiations concluded without a deal.

  • Sentiment in the Asian gasoline market appeared firm Friday despite renewed trade tension between the US and China.

  • Fundamentals in the Asian gasoline market were steady towards the end of the trading week, keeping sentiment among market participants firm despite mixed supply-side data from the US and Middle East.

  • The Asian gasoil market remained steady Friday as market fundamentals remained largely unchanged.  The Asian gasoil market remained firm amid strengthening fundamentals in the region. A trader said that Asia gasoil supply is still pretty tight.

 

FOREX:  Week-on-week value of Philippine Peso appreciated against the US dollar by P0.08 to P51.07, from P51.16 in the previous week.

Other recommended reference sites:

DOMESTIC OIL PRICES      

For this week, there were no movements implemented by the oil companies on fuels.

Year-to-date adjustments remains at a net increase of P5.00/liter for gasoline, P3.95/liter for diesel and P2.15/liter for kerosene.

For the updated prevailing retail pump price, please browse this link: https://www.doe.gov.ph/price-monitoring-charts?q=retail-pump-prices-metro-manila

For more information, call the

Department of Energy
Pricing: 840-2187
LPG: 840-2130
Fuels: 840-5669
SMS: (0915) 4469421
Email: oilmonitor@doe.gov.ph
Website: https://www.doe.gov.ph

Oil Monitor as of 30 July 2019


WORLD OIL PRICES  (July 22-26, 2019 trading days)

Dubai crude  has  decreased  week-on-week by nearly  US$1.00 per barrel. MOPS   gasoline has also decreased   per barrel by  almost US$3.40 while MOPS diesel has slightly increased  by about  US$0.02 per barrel.

Reasons for the Adjustment

  • Crude prices settled lower, shedding risk premiums, as Gulf Coast oil operations normalized after Hurricane Barry left inland.

  • Russian oil output reportedly returned to the level allowed in the OPEC+ agreement after dropping at the start of the month.  

    • Russia committed to a production level of 11.191 million b/d under the OPEC+ deal which runs to the end of March 2020.

  • Easing tensions in the Middle East also placed a cap on crude prices during the week.

    • UK government sent a mediator to Iran to start negotiations for release of the British-flagged Stena Impero which was seized by Revolutionary Guard forces in the Strait of Hormuz last week.

  • Friday news revealed that the US Treasury extended until October 25 a waiver allowing Chevron and four US oil services companies to continue working in Venezuela's oil sector.

    • The potential end of waivers is expected to further erode Venezuelan oil output, according to the US Energy Information Administration.

    • Venezuelan oil production averaged 760,000 b/d in June, according to the latest Platts OPEC survey, 680,000 b/d below its June 2018 output and 1.64 million b/d below its output in June 2015.

  • Gasoline market in Asia sustained weakness in trading sessions over the week likely due to news on the fresh batch of Chinese export quota.

  • The Asian gasoil market continued to gain momentum on the back of ongoing supply tightness.

 

FOREX:  Week-on-week value of Philippine Peso depreciated against the US dollar by  P0.15  to P51.16, from P51.01 in the previous week.

Other recommended reference sites:

DOMESTIC OIL PRICES      

Effective   30 July 2019, most of the oil companies implemented a per liter  price increase/decrease on petroleum products. Gasoline has decreased by  P0.95, while both diesel and kerosene have increased  by  P0.15 and  P0.10, respectively. 

Year-to-date adjustments stand at a net increase of P5.00/liter for gasoline, P3.95/liter for diesel and P2.15/liter for kerosene.

For the updated prevailing retail pump price, please browse this link: https://www.doe.gov.ph/price-monitoring-charts?q=retail-pump-prices-metro-manila

For more information, call the

Department of Energy
Pricing: 840-2187
LPG: 840-2130
Fuels: 840-5669
SMS: (0915) 4469421
Email: oilmonitor@doe.gov.ph
Website: https://www.doe.gov.ph

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