Oil Monitor as of 29 August 2024

Date published: August 29, 2024

 

WORLD OIL PRICES (August 19-23, 2024, trading days)

The week-on-week price of Dubai crude has decreased by around $2.80 per barrel. The international price of gasoline, diesel and kerosene have also decreased week-on-week by about $2.90, $4.60 and $3.90 per barrel, respectively.

Reasons for the Price Adjustment1

  • Crude oil futures were lower as a soft US labor market added to concerns over demand from the Chinese economy, despite a fall in US oil inventories.
    • The United States Labor Department lowered its estimates for US payroll growth by 818,000 jobs for the period of April 2023 through March 2024. This downward revision of jobs suggests that the labor market is far weaker, suggesting a weaker economy, which in turn could mean that demand for crude is cooling off.
    • China's crude oil imports from Russia fell for the fourth straight month to a 19-month low of 1.76 million b/d (7.46 million metric tons) in July, General Administration of Customs data showed Aug. 20, as state-run refineries reduced purchases.
  • The Asian gasoline market moved higher on stable regional demand however the gains were capped by a narrowed US RBOB-Brent crack and a well-supplied market.
  • According to data released by Joint Organization Data Initiative (JODI) on August 22, Saudi Arabia's gasoline inventories rose by 2.12% on the month and 6.66% on the year to a total of 3.618 million mt in June. This increase in stock levels occurred as gasoline consumption eased following the monthly rise in consumer price index.
  • Indonesia's gasoline demand is projected to hold steady following recent elections, as the nation awaits new presidential initiatives on sustainable fuel. Gasoline imports into Indonesia decreased by 2.93% from the previous month but rose by 3.75% on the year, reaching 1.217 million mt in June, according to national statistics release Aug 20.
  • The fundamentals in the gasoil/diesel complex were weak as demand remained muted while trade participants awaited clarity on China's third batch of export quotas expected to be announced in September.
  • Exports remained elevated from China and South Korea amid subdued domestic demand and low refinery maintenance in August.

FOREX: The week-on-week average of Philippine peso appreciated versus the US dollar by P0.58 to P56.55 from P57.13 in previous week.

DOMESTIC OIL PRICES

Effective 27 August 2024, the oil companies implemented a decrease of P1.15/liter for gasoline, P1.90/liter for diesel and P1.85/liter for kerosene.

Year-to-date, total adjustment of gasoline and diesel stands at a net increase of P6.90/liter and P4.05/liter, respectively. However, kerosene has a total net decrease of P4.00/liter.

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1 Asia Pacific 23 August 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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