Oil Monitor as of 06 October 2020

Date published: October 7, 2020

WORLD OIL PRICES (September 28-October 2, 2020 trading days)

Dubai crude has decreased week-on-week by about US$0.80/bbl. MOPS diesel has also decreased by around US $0.15 per barrel. On the opposite, MOPS gasoline has increased by around US$0.30 per barrel.

Reasons for the Adjustment

  • Oil prices turned higher amid a renewed focus on supply after Saudi Arabia ratcheted up pressure on OPEC+ compliance laggards.
  • Saudi energy minister Prince Abdulaziz bin Salman had secured commitments from OPEC+ compliance laggards to make good on their pledged crude production cuts by the end of December. Delinquent OPEC+ members will have to make good on their required crude production cuts.
  • The OPEC+ coalition in August rolled back its historic 9.7 million b/d (MMB/D) production cut accord to 7.7 MMB/D and is scheduled to relax it further to 5.8 MMB/D at the start of 2021.
  • Crude oil futures edged up as tough rhetoric from Saudi Arabia directed at output compliance violators added to an earlier US stocks draw to provide some bullish respite for the coronavirus-preoccupied oil market.
  • Further, NYMEX WTI futures were trading higher as offshore operators in the western Gulf of Mexico began evacuating platforms ahead of the formation of a tropical depression in the region.
  • Sentiment in the Asian gasoline market is bullish, with industry participants attributing additional support from expectations of more cuts to regional refining output against a backdrop of steady demand.
  • The Asian gasoil market is steady as industry sources eyed fresh developments on supply-demand fundamentals to provide pricing cues.
  • Asia’s oil demand will take a hit from COVID-19 in 2020, but market analyst believe that the Region will lead global recovery in 2021 as it is expected to bounce back, driven by China and India.
  • Asia’s collapse of demand has exposed rising refining overcapacity in the region, triggering the start of another period of rationalization.
 

FOREX:  Philippine peso appreciated week-on-week against the US dollar by P0.02 to P48.45 from P48.47 in previous week.

Other recommended reference sites:
    • http://www.aip.com.au/pricing
    • http://www.indexmundi.com/commodities/?commodity=crude-oil-dubai
    • https://www.quandl.com/data/ODA/POILDUB_USD-Dubai-Crude-Oil-Price

DOMESTIC OIL PRICES

The oil companies implemented their price adjustments effective today, 06 October 2020. Gasoline has increased by P0.10 per liter and kerosene by P0.20 per liter. No movement has been effected on the price of diesel.

These resulted to the total year-to-date adjustments to stand at a net decrease of P4.32/liter for gasoline, P10.71/liter for diesel and P14.19/liter for kerosene.

For the updated prevailing retail pump price, please browse this link: https://www.doe.gov.ph/price-monitoring-charts?q=retail-pump-prices-metro-manila.

For more information, call the

Department of Energy
Pricing: 840-2187
LPG: 840-2130
Fuels: 840-5669
SMS: (0915) 4469421
Email: oilmonitor@doe.gov.ph
Website: https://www.doe.gov.ph

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