WORLD OIL PRICES (March 2-6, 2020 trading days)
Dubai crude has decreased week-on-week by around US$1.70 per barrel. MOPS gasoline and MOPS diesel have also decreased, gasoline by about US$3.40 per barrel and diesel by nearly US$2.25 per barrel.
Reasons for the Adjustment
- OPEC and its coalition partners are meeting in Vienna on March 5-6 to discuss deeper cuts to crude production amid weaker global demand caused by the COVID-19 outbreak, which has spread to 72 countries outside China.
- Saudi Arabia has for weeks urged fellow partners to embrace further reductions. An additional 600,000 b/d in cuts have been touted, although some reports suggest the reduction could be 1 million b/d should all participants agree.
- Russia is seen as far more resilient to lower oil prices and has steadfastly refused to commit to any further restrictions on its production.
- OPEC agreed to slash its production quotas by 1 million b/d, contingent on Russia and nine other non-OPEC allies agreeing to shrink theirs by 500,000 b/d, for the rest of the year, amid weaker global demand caused by the COVID-19 outbreak.
- However, with Russia refusing to go along with the deal, the 23-country OPEC+ coalition's current 1.7 million b/d production quotas will expire at the end of the month, potentially unleashing a price-tanking market share battle.
- Not all OPEC+ members were ready to give up, with many still holding the door open for Russia, and some suggesting the Joint Ministerial Monitoring Committee could meet later this month.
- Sentiment in the Asian gasoline market weakened further Friday as more supply emerged in the spot market while demand remained weak.
- Weakening fundamentals in the Asian gasoil market weighed heavily on the middle distillate product Thursday as concerns over evaporating demand and ample supplies took center stage.
FOREX: Week-on-week value of Philippine Peso appreciated against the US dollar by P0.29 to P50.69 from P50.97 in the 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
Effective March 7,9 and 10 2020, most of the oil companies implemented a price decrease on petroleum products. The price of gasoline has decreased by P1.20/liter, diesel by P0.75/liter and P1.05/liter for kerosene.
Year-to-date adjustments stand at a net decrease of P5.10/liter for gasoline, P6.75/liter for diesel and P8.30/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