Oil Monitor as of 18 March 2020

Date published: March 20, 2020

WORLD OIL PRICES (March 09-13, 2020 trading days)

Dubai crude decreased week-on-week by about US$17/bbl.  Likewise, MOPS gasoline decreased by about US$15/bbl along with MOPS diesel by over US$13/bbl.

Reasons for the Adjustment

  • Demand outlooks dimmed over the week amid the continued spread of the coronavirus across the US and Europe.
  • The US Federal Reserve expressed reduce interest rates from 1.75% to just below 1.25%, reportedly the lowest since the 2008 financial crisis, on concern over the effects of the coronavirus on economic activity in the near term.
  • Russia is set to fully return to production levels reached before the OPEC+ deal in October 2018, restoring about 200,000 b/d of production.  Saudi Aramco also plans to raise its output capacity to more than 12 million bpd starting April.
    • All production limits were scrapped after Moscow rejected OPEC’s call for deeper production curbs, prompting Riyadh and the UAE to say they would both ramp up output to record levels.
  • Supply of gasoline in Asia is increasing as refineries raised run rates from February lows in order to make space for cheap crude in their tanks.
  • Spot supplies of gasoline and diesel continue to be seen in regional markets.
  • The Asian gasoil market regained its footing as the week ended but remained subdued, with the earlier upward momentum seen in the market pausing to take stock of the volatility experienced during the week.
  • Market observers took note of the overall recovering domestic demand in China, as the country gradually ramps up activity following an extended and widespread shutdown to facilitate containment measures aimed at halting the rampant spread of COVID-19.
  • Commercial onshore middle distillate stocks in Asia's main trading hub of Singapore eased from a 22-week high as gasoil exports almost doubled compared to previous week, helping to relieve pressure from a buildup resulting from a surge in earlier imports.

FOREX: Philippine peso depreciated week-on-week against the US dollar by P0.04 to 50.72, from P50.69 in the preceding 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

Oil companies implemented price rollbacks on 14 -17 March 2020 by P4.25/liter for gasoline and diesel, and P4.35-4.50/liter for kerosene.

Year-to-date adjustments stands now at a net decrease of P9.35/liter for gasoline, P11.00/liter for diesel and P12.79/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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