Oil Monitor as of 31 December 2024

Date published: January 2, 2025

WORLD OIL PRICES (December 23-27, 2024, trading days) 

The week-on-week price of Dubai crude has increased by about $0.60 per barrel. While on the opposite, the international price of gasoline, diesel and kerosene have decreased by around $0.90, $0.60 and $1.40 per barrel, respectively. 

Reasons for the Price Adjustment1

  • Crude oil futures rose driven by expectations of a fifth consecutive drawdown in US crude inventories, while the Chinese government's efforts to boost the economy could potentially alleviate oil demand. 
  •  The American Petroleum Institute reported a 3.2- million-barrel drawdown in US commercial crude stocks Dec. 26, putting them at their lowest outright level since late September and 5% behind the five-year average of Energy Information Administration data.
  • Due to the emergence of Chinese cargoes, the Asian gasoline market weakened, although demand in the region remained firm amid year end festivities. 
  • Moreover, China issues 19 million mt of clean oil product export quotas in first 2025 batch. Total quotas for gasoline, jet fuel and gasoil exports were flat compared to the 19 million mt issued in the first batch for 2024, with the fuel oil export quota total also unchanged year over year.
  • Also, Chinese loadings are expected to increase in January and that was attributed to an increase in offers for Chinese supplies in the recent weeks.
  • The Asian gasoil/diesel market structure narrowed amid limited buying interest toward the year end and the announcement of China's first batch export quotas for 2025.
  • Steady supply was expected for January-loading cargoes, with cargoes from India still heading toward the East of Suez, pressuring the complex.  

FOREX: The week-on-week average of Philippine peso appreciated versus the US dollar by P0.72 to P58.14 from P58.87 in the previous week. 

DOMESTIC OIL PRICES

Effective 31 December 2024, oil companies implemented a rollback on the price of petroleum products. Gasoline and diesel have decreased by P0.30/liter while kerosene decreased by P0.90/liter.

Year-to-date, total adjustment of gasoline and diesel stands at a net increase of P12.75/liter and P11.00/liter, respectively. On the other hand, kerosene has a total net decrease of P2.70/liter.

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1 Asia Pacific 27 December 2024 Weekly Recap by S & P Global Platts Analytics 

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

Other recommended reference sites:

 

For more information, call the

Department of Energy
Pricing: 8840-2187
LPG: 8840-2130
Fuels: 8840-5669

Website: https://www.doe.gov.ph

 

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