Oil Monitor as of 04 September 2024

Date published: September 7, 2024

 

WORLD OIL PRICES (August 26-30, 2024, trading days)

The week-on-week price of Dubai crude has increased by around $1.80 per barrel. The international price of gasoline, diesel and kerosene have also increased week-on-week by about $1.10, $0.50 and $1.70 per barrel, respectively.

Reasons for the Price Adjustment1

  • Crude oil futures settled higher on bullish US economic data, US stock draws and production cuts in Libya.
  • The US economy grew last quarter at a 3% annual pace, estimates released by the US Commerce Department showed Aug. 29, higher than initial expectations of a 2.8% growth rate from April through June.
    • The bullish figures were supported by increased consumer spending, which comprises 70% of the country's economic activity.
    • Weekly US jobs data also showed a 2,000 drop in initial unemployment claims to 231,000 for the week ended Aug. 24, retreating from an 11-month high in late July.
  • Libyan crude output has roughly halved to just 591,000 b/d amid a campaign by the country's eastern government to stop all oil production.
  • Nevertheless, long-term bearish fundamentals are expected to cap any upsides to crude prices as weakening Chinese demand coupled with an anticipated expansion in OPEC+ production in Q4 is expected to weigh on prices.
  • The Asian gasoline market was expected to rally buoyed by the strengthening US RBOB-Brent crack spread ahead of the Labor Day holiday in the United States, however gains were capped by rise in crude prices and stable demand in Indonesia.

FOREX: The week-on-week average of Philippine peso appreciated versus the US dollar by P0.31 to P56.24 from P56.55 in previous week.

DOMESTIC OIL PRICES

Effective 03 September 2024, the oil companies implemented an increase of P0.50/liter for gasoline, P0.30/liter for diesel and P0.70/liter for kerosene.

Year-to-date, total adjustment of gasoline and diesel stands at a net increase of P7.40/liter and P4.35/liter, respectively. However, kerosene has a total net decrease of P3.30/liter.

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1 Asia Pacific 30 August 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: 840-2187
LPG: 840-2130
Fuels: 840-5669

Website: https://www.doe.gov.ph

 

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