Oil Monitor as of 21 January 2020


WORLD OIL PRICES  (January 13-17, 2020 trading days)

Dubai crude has decreased week-on-week by almost US$03.00 per barrel. Both MOPS gasoline and MOPS diesel have also decreased, gasoline by around US$2.75 per barrel and diesel by nearly US$5.10 per barrel.

Reasons for the Adjustment

  • Oil held its biggest gain in almost two weeks on optimism a more conciliatory approach on trade from the U.S. will help revive growth, but was still headed for a weekly drop amid persistent demand concerns.

  • Futures in New York edged higher after closing up 1.2% Thursday. Washington and Beijing signed a phase-one trade deal on Wednesday, while the Senate passed the U.S.-Mexico-Canada free trade agreement a day later. A big jump in American oil-product stockpiles last week highlighted sluggish demand.
    • China pledged $52.4 billion in additional purchases of American energy over 2020 and 2021 in the agreement, although there was some skepticism in the market about whether it would be able to reach the target.
  • OPEC+ members will remain united in their stewardship of the oil market, whether or not their current production cuts are extended beyond their currently scheduled March expiry.
  • OPEC, Russia and nine other countries are entering their fourth year of production cuts aimed at supporting oil prices, with the current deal that went into force January 1 calling on the coalition to slash 1.7 million b/d of output through March. Saudi Arabia has also pledged to cut a further 400,000 b/d if all other members respect their production quotas.
  • The alliance will meet again March 5-6 in Vienna to decide on the future of the deal.
  • The Asian gasoline market continued on a downward trajectory Friday due to healthy supply and weak demand as driving activity tapers off during winter. The oversupply situation in Asia was also seen in the Middle East.
  • Downward pressure was maintained on the Asian gasoil market, as good supply levels weighed on fundamentals.
  • Spot gasoil supplies were seen in abundance Thursday, maintaining downward pressure on the Asian market.

FOREX:  Week-on-week value of Philippine Peso appreciated against the US dollar by P0.14 to P50.72 from P50.85 in the previous week.

Other recommended reference sites:

DOMESTIC OIL PRICES      

Effective January 18-21,2020, most of the oil companies implemented a price decrease on petroleum products. The price of gasoline has decreased by P0.85-P0.90/liter, diesel by P1.70/liter and P1.60-P1.65/liter for kerosene.

Year-to-date adjustments stand at a net decrease of P0.95/liter for gasoline, P1.50/liter for diesel and P1.64/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 14 January 2020


WORLD OIL PRICES  (January 6-10, 2020 trading days)

Dubai crude has increased week-on-week by around US$0.75 per barrel.  On the contrary, both MOPS gasoline and MOPS diesel have decreased, gasoline by nearly US$0.30 per barrel and diesel by almost US$0.95 per barrel.

Reasons for the Adjustment

  • Crude markets retreated Friday in line with easing geopolitical tensions that followed after news that the House of Representatives had approved a resolution that would need US President Donald Trump to seek consent from the Congress before taking new military action against Iran.
  • Risk premiums in the Middle East sour crude market eased in mid-week after remarks from the US showed a softening stance in its latest encounter with Iran.
    • Oil prices rose by 5%, from US$66/bbl to US$70/bbl, following the killing of Iranian General Qassem Soleimani.
    • Crude prices dropped on Thursday extending days of losses as the threat of war in the Middle East, a major oil producing region, receded and investors switched their attention to economic growth prospects and demand for crude.
  • Oil prices escalated Monday following the geopolitical tensions between the US and Iran that escalated after the US killing of Iranian General Qassem Soleimani last week.
  • The Asian gasoline market was lackluster as additional spot supply continued to underscore weakening fundamentals in the region.
    • Asia remain to have ample supply of gasoline as commercial onshore light distillate stocks in Singapore inched 4% higher to a total 12.062 million barrels in the week ended January 8, according to data released by Enterprise Singapore.
    • Japan’s gasoline total exports of 1.57 mil barrels in the past two weeks marked the highest since week of Jan 27-Feb 2, 2019.
  • The Asian gasoil/diesel market was on downward trend over the past week. But firmer demand from India and Indonesia were seen this week that helped prop up the market.  
    • Spot incremental demand from South and Southeast Asia remained a factor that was supporting the market, 
    • Gasoil demand from the marine fuel sector was still clouding sentiment. While support for gasoil from the marine fuel blending pool had been seen earlier this week, trade sources cautioned that the upside for gasoil was limited due to ship owners preference for marine fuel 0.5% due to its higher viscosity specification.

FOREX:  Week-on-week value of Philippine Peso depreciated against the US dollar by P0.09 to P50.85 from P50.76 in the previous week.   

Other recommended reference sites:

DOMESTIC OIL PRICES      

Effective January 12-14,2020, most of the oil companies implemented a price decrease on petroleum products. The price of diesel has decreased by P0.20/liter and P0.30/liter for kerosene. There was no movement effected on the price of gasoline.  

Year-to-date adjustments stand at a net decrease of P0.10/liter for gasoline and a net increase of  P0.20/liter for diesel.

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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