Oil Monitor as of 04 June 2024

Date published: June 5, 2024

WORLD OIL PRICES (May 27-31, 2024, trading days)

The week-on-week price of Dubai crude has increased by around $0.40 per barrel. The international price of diesel and kerosene have also increased week-on-week by almost $0.50 and $1.30 per barrel, respectively. Contrary to gasoline that has decreased by about $3.00 per barrel.

Reasons for the Price Adjustment1

  • Crude oil futures moved higher on escalating geopolitical tensions in the Middle East. However, weak Chinese and US economic data raised concerns about slowing demand amid surprise build in US inventories.
  • Geopolitical concerns have been reignited in the past few days because of the rising tensions in the Middle East between Israel and Hamas, including an attack on a commercial ship in the Red Sea by the Houthis.
    • With the Israeli military expanding operations in the city of Rafah, the risk of a potential expansion of the ongoing conflict in Gaza to the wider region reignited concerns.
  • The crude price slide also accelerated after US Energy Information Administration data showed US gasoline stocks unexpectedly climbed 2.02 million barrels to a nine-week high 228.84 million barrels in the week ended May 24, days before the summer driving season begin.
  • The Asian gasoline complex softened, tracking a narrowing US RBOB-Brent crack and as refineries in the region resumed operations.
  • Market was of the view that gasoline import interest from Japan has relaxed as refineries came back online, while others attributed the lower demand to inflation and falling real household income levels.
  • The Asian gasoline supplies were also buoyed by Saudi Arabia's Ras Tanura refinery coming back online from maintenance as well as China’s Zhongke Refining & Chemical, which closed its 200,000-b/d refinery on March 20 for a scheduled maintenance resumed operations.
  • The Asian gasoil/diesel market had begun to rebound as market participants expect fewer Middle East and Indian cargoes moving East, following a drop in freight rates from Middle East to Europe.
    • Some demand emerged in Indonesia following the fire on May 25 at its Balikpapan refinery.

FOREX: The week-on-week average of Philippine peso depreciated versus the US dollar by P0.21 to P58.30 from P58.09 in previous week.

DOMESTIC OIL PRICES

Effective 04 June 2024, the oil companies implemented a mixed adjustment on the price of petroleum products. Gasoline prices have decreased by P0.90/liter. On the other hand, diesel and kerosene have increased by P0.60/liter and P0.80/liter, respectively.

Year-to-date, total adjustment of gasoline and diesel stand at net increase of P6.65/liter and P5.45/liter, respectively. Kerosene, on the other hand, has a net decrease of P0.25 per liter.

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1 Asia Pacific 31 May 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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