WORLD OIL PRICES (November 25-29, 2019 trading days)
Dubai crude has increased week-on-week by almost US$1.30 per barrel. MOPS gasoline and diesel have also increased, gasoline by around US$0.80 per barrel and diesel by nearly US$1.85 per barrel.
Reasons for the Adjustment
Concerns about an escalation of the trade war between the world's two biggest economies have weighed on crude futures for much of this year, with both countries imposing tariffs on each other's exports.
With trade talks dominating market action, the higher opening prices came after US national security adviser Robert O’Brien said on Saturday that an initial trade agreement with China is still possible by the end of the year.
The Asian gasoline market is expected to stay firm, as sentiment remained supportive amid expectations of tight gasoline supply due to IMO 2020, a trader said.
Demand from the Middle East was robust despite the approaching winters, which typically see a seasonal lull for the transport fuel.
The Asian gasoline market was steady, as sentiment remained mixed amid a slew of tenders in the spot market.
Asian gasoline market saw a fresh bout of strength at the end of the trading week, as sentiment remained firm and unfazed by the sharp day-on-day dip seen in derivative and physical cracks spreads at the Asian close Thursday.
Asian gasoil staged a moderate recovery this week. After six weeks of near-constant decline, both cracks and timespreads moved upwards.
IMO 2020 is also having an impact on freight cost, with owners asking for higher rates due to the increase cost of compliant fuel.
FOREX: Week-on-week value of Philippine Peso appreciated against the US dollar by P0.03 to P50.79, from P50.82 in the previous week.
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DOMESTIC OIL PRICES
Effective December 03, 2019, most of the oil companies implemented a price increase for gasoline, diesel and kerosene. Gasoline has increased by P0.30/liter, P0.65/liter for diesel and P0.50 for kerosene.
Year-to-date adjustments stand at a net increase of P6.82/liter for gasoline, P3.81/liter for diesel and P0.94/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