Oil Monitor as of 25 February 2020

Date published: February 26, 2020

WORLD OIL PRICES  (February 17-21, 2020 trading days)

Dubai crude has increased week-on-week by almost US$2.10 per barrel.   MOPS gasoline and MOPS diesel have also increased, gasoline by around US$0.90 per barrel and diesel by nearly US$0.60 per barrel. 

Reasons for the Adjustment

  • Oil prices were up after the U.S. government reported a much smaller-than- anticipated rise in crude stocks, worries on declining demand due to the spread of coronavirus cases outside China.
  • The US bid to dominate Venezuela’s oil sector through secondary sanctions could unite foreign competitors against Washington and spark a global conflict, analysts said.
    • Earlier this week, the United States imposed sanctions on Russia’s Rosneft Trading SA and its head Didier Casimiro for operating in Venezuela’s oil sector. Moscow accused Washington of unfair trading practices and said the new sanctions will harm US-Russian relations.
    • Supplies tightened as the United States moved to cut off more Venezuelan crude from the market.
  • Meanwhile, Libya’s cease-fire talks were suspended after the capital’s port was shelled by forces loyal to military commander Khalifa Haftar, who has forced a blockade of the country’s crude exports.
    • The deterioration of supply out of conflict in Libya due to a blockade of ports and oilfields also tightened the crude market and propped up prices. 

  • Geopolitical tensions are rising against the backdrop of the coronavirus outbreak, which has hurt global energy demand. The Organization of Petroleum Exporting Countries sent invitations for a meeting between the cartel and its allies on March 5 and 6, signaling that plans for an emergency gathering to address the epidemic have faded away.

  • U.S. gasoline stockpiles fell by about 2 milllion barrels last week greater than analysts’ estimated increase of 435,000 barrels, according to the EIA data.

  • Asian gasoil market saw sentiment weaken amid lack of positive drivers. China is seeing a sharp slowdown in industrial activity due to the coronavirus, driving expectations of increased export volumes from Chine refiners next month.

FOREX:  Week-on-week value of Philippine Peso depreciated against the US dollar by P0.02 to P50.63 from P50.61 in the previous week.  

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DOMESTIC OIL PRICES      

Effective February 25, 2020, most of the oil companies implemented a price increase on petroleum products. The price of gasoline has increased by P0.30/liter, diesel by  P0.20/liter  and  P0.35/liter for kerosene. 

Year-to-date adjustments stand at a net decrease of P2.50/liter for gasoline, P4.40/liter for diesel and P5.59/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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