Oil Monitor as of 03 March 2020

Date published: March 3, 2020

WORLD OIL PRICES  (February 24-28, 2020 trading days)

Dubai crude has decreased week-on-week by almost US$4.00 per barrel.   MOPS gasoline and MOPS diesel have also decreased, gasoline by about US$5.00 per barrel and diesel by nearly US$05.60 per barrel.

Reasons for the Adjustment

  • Oil prices continued plunging for a fifth consecutive trading session, dipping by more than 4 percent as the market fears a coronavirus pandemic that could destroy more oil demand in the coming months. 

    • The massive sell-off in oil extends to equity markets amid fears that a pandemic would severely damage global economic growth. Major Asian and European stock markets were deep in the red on Thursday and the Dow was set to open 450 points lower in what has been so far the worst week since the financial crisis.

    • Oil prices are now more than 10 percent lower than the levels seen just last week, before fears of a global coronavirus outbreak started slamming riskier assets and equities and sent market participants heavily selling oil. The market largely ignored a relatively bullish EIA inventory report on Wednesday, and it continues to ignore a massive 1-million-bpd supply disruption from restive Libya.

  • The spread of the coronavirus epidemic from China around the world poses a unique challenge for the Organization of the Petroleum Exporting Countries and their allies, as the major oil producers prepare for talks next week aimed at supporting prices and balancing global supply and demand.
  • OPEC and its allies, collectively known as OPEC+, will gather in Vienna for official meetings on March 5 and 6. The oil market expects the producers to extend the expiration of existing production cuts, and many analysts see the likelihood of an additional output reduction.

  • The Asian gasoline market looked poised to weaken for the second consecutive day Thursday, as gasoline crack spreads inched lower amid growing concerns over further demand declines due to the accelerating spread of COVID-19 outside of China.

  • The Asian gasoil market was mired in bearishness with participants saying that earlier support seen for the March/April timespread has collapsed as economic pressure mounted on an acceleration of the spread of the COVID-19 outbreak globally. 

FOREX:  Week-on-week value of Philippine Peso depreciated against the US dollar by  P0.35 to P50.97 from P50.63 in the previous week.  

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DOMESTIC OIL PRICES      

Effective March 03, 2020, most of the oil companies implemented a price decrease on petroleum products. The price of gasoline has decreased by P1.40/liter, diesel by P1.60/liter and P1.65/liter for kerosene.  

Year-to-date adjustments stand at a net decrease of P3.90/liter for gasoline, P6.00/liter for diesel and P7.24/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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