Oil Monitor as of 30 April 2024

Date published: April 30, 2024

WORLD OIL PRICES (April 22-26, 2024, trading days)

The week-on-week price of Dubai crude has decreased by around $0.70 per barrel. Gasoline, diesel and kerosene have also decreased week-on-week by about $1.90, $2.30, and $3.00 per barrel, respectively.

Reasons for the Price Adjustment1

  • Crude oil futures were higher on the back of a larger-than-expected drawdown in US crude oil inventories, while a hot economic reading from South Korea put its near-term monetary policy easing in doubt but bullish sentiment was offset by geopolitical risk premiums easing amid cooling Israel-Iran tensions.
    • US crude oil inventories fell by 6.37 million barrels to 453.63 million barrels in the week ended April 19.
    • The counter seasonal draw, which came amid strong exports and elevated refinery demand, exceeded market expectations, putting stocks 4.2% behind the five-year average for this time of year.
  • The US Senate passed a bill to expand the existing sanctions on Iran and crack down on Iranian oil exports. The proposed extended sanctions to include foreign vessels, refineries and ports which knowingly process Iranian crude oil.
    • However, doubts remain in the market over whether this expansion will significantly affect global oil supplies, as extra OPEC+ production capacity and healthy crude inventories could cushion any potential losses.
  • The Asian gasoline complex weakened despite a drop in US gasoline inventory on rising crude price.
    • The US gasoline stocks fell by 634,000 barrels to 226.743 million barrels in the week ended April 19, possibly exerting downward pressure on American gasoline supplies.
  • For gasoil/diesel, a supply glut in the Asia saw refiners mulling production cuts, keeping the paper segment in a contango2 structure for most of the week.
  • Poor arbitrage economics to ship cargoes to its natural outlet in Europe kept gasoil cargoes to the East of Suez thereby increasing the regional supply and pressuring the complex where demand was not strong enough.

FOREX: The week-on-week average of Philippine peso depreciated versus the US dollar by P0.50 to P57.61 from P57.11 in previous week.

DOMESTIC OIL PRICES

Effective 30 April 2024, the oil companies implemented a per liter decrease in gasoline by P0.25, diesel by P0.45 and P0.90 for kerosene.

Year-to-date adjustment of gasoline, diesel and kerosene stand at a per liter net increase of P10.00, P5.60 and P0.25, respectively.

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1 Asia Pacific 26 April 2024 Weekly Recap by S & P Global Platts Analytics

For the updated prevailing retail pump prices, please refer to this link:

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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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