Oil Monitor as of 05 March 2024

Date published: March 5, 2024

WORLD OIL PRICES (February 26-March 01, 2024, trading days)

The week-on-week price of Dubai crude has decreased by almost $0.70 per barrel. MOPS (Mean of Platts Singapore) diesel and kerosene have also decreased by around $1.80 and $1.20 per barrel, respectively. On the contrary, MOPS gasoline has increased by nearly $0.65 per barrel.

Reasons for the Price Adjustment1

  • Crude oil prices fell as the market digested a seasonal US inventory build against a backdrop of global demand concerns. The market likewise eyed the OPEC+ cut extension decision.
  • Another 3.2- million-barrel of crude purchased by the US to replenish the Strategic Petroleum Reserve kept a floor on prices through the Asian session.
    • However, the sustainability of US demand remained unclear as US crude oil inventories extended their seasonal build, reaching their highest level since late November.
  • The Asian gasoline complex strengthened following an announcement that Russia would halt gasoline exports for a period of six months starting March 1. However, the strength was limited as Russian exports do not make up a substantial share of Asian gasoline inflows.
  • Some support to gasoline prices was also seen coming from unplanned shutdown at S-Oil’s Onsan refinery in South Korea along with planned maintenance at Taiwan’s Formosa Petrochemical scheduled in March.
  • The Asian ultra-low sulfur gasoil/diesel market structure was seen edging lower, weighed down by expectations of higher gasoil exports and rising supply due to trapped barrels in the east or weak East-West arbitrage economics.
  • Meanwhile, China's gasoil exports were estimated at around 1.2 million mt-1.3 million in March, up from 910,000 mt for February and 990,000 mt for January. Chinese customs have scheduled the release of export volumes of different products for January and February on March 18.

FOREX: The week-on-week average of Philippine peso depreciated versus the US dollar by P0.14 to P56.10 from P55.96 in previous week.

DOMESTIC OIL PRICES

Effective 05 March 2024, the oil companies implemented a per liter decrease of P0.40 and P0.35, respectively, for diesel and kerosene. On the other hand, the price of gasoline has increased by P0.50 per liter.

Year-to-date adjustment of gasoline, diesel and kerosene stands at a net increase of P5.95/liter, P4.05/liter and P0.05/liter, respectively.

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1 Asia Pacific 01 March 2024 Weekly Recap by S & P Global Platts Analytics

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For more information, call the

Department of Energy
Pricing: 840-2187
LPG: 840-2130
Fuels: 840-5669
Website: https://www.doe.gov.ph

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