Oil Monitor as of 22 September 2020

Date published: September 22, 2020

WORLD OIL PRICES (September 14-18, 2020 trading days)

Dubai crude has increased week-on-week by about US$0.70/bbl. Both MOPS gasoline and MOPS diesel have also increased: gasoline by almost US$2.00 per barrel and diesel by nearly US$ 0.50 per barrel.

Reasons for the Adjustment

  • Oil prices turned higher amid a renewed focus on supply after Saudi Arabia energy minister Prince Abdulaziz bin Salman ratcheted up pressure on OPEC+ compliance laggards. Delinquent OPEC+ members will have to make good on their pledged crude production cuts by the end of December.
  • 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.
  • US stocks draw also provided some bullish respite for the coronaviruspreoccupied oil market 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 was bullish on expectations of more cuts to regional refining output against a backdrop of steady demand.
  • On the other hand, Asian gasoil market was relatively steady on reports of fresh developments on supply-demand fundamentals.
  • 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.

FOREX:  Philippine peso appreciated week-on-week against the US dollar by P0.16 to P48.44 from P48.60 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, 22 September 2020. Gasoline has increased of P0.60 per liter, diesel by P0.20 per liter and kerosene by P0.55 per liter.

These resulted to the total year-to-date adjustments to stand at a net decrease of P4.62/liter for gasoline, P10.79/liter for diesel and P14.84/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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