Oil Monitor as of 04 February 2020

Date published: February 4, 2020

WORLD OIL PRICES  (January 27-31, 2020 trading days)

Dubai crude has decreased week-on-week by almost US$05.25 per barrel.  Both MOPS gasoline and MOPS diesel have also decreased, gasoline by about US$5.00 per barrel and diesel by nearly US$6.20 per barrel. 

Reasons for the Adjustment

  • Oil resumed declines as the biggest jump in U.S. crude stockpiles in almost three months added to concern over weak demand in a market already grappling with China’s spreading coronavirus.

  • U.S. inventories rose by 3.5 million barrels last week, raising fears of a supply glut. Airlines across the world suspended flights to China as the death toll from the virus reached 170, with the World Health Organization meeting to consider issuing a global alarm.

  • Oil is heading for the biggest monthly drop since May as the virus crimps global travel and economic activity within China, the world’s biggest energy consumer. The impact of the potential demand hit is being heightened as the market is oversupplied with crude, particularly from non-OPEC countries. The producer group is considering pushing forward a meeting initially scheduled for March, according to Algeria’s energy minister, amid the price slump.

  • The Asian gasoline market recovered marginally to stabilize midweek from a sharp fall seen a day before that brought gasoline crack spreads to multi-month lows.

    • Regional demand is expected to dampen in line with a slowdown in activity owing to a Wuhan-originated coronavirus, with governments likely implementing plans to contain the spread of the virus domestically should the outbreak worsen, sources said. 

  • The Asian gasoil market demand concerns remained at the fore Wednesday with Asian gasoil market participants saying that the advance of the Wuhan coronavirus, and the efforts being taken to limit the spread, would have an impact on the middle distillate product.

  • The Asian gasoil market was stable Thursday, with some sources saying the last few days allowed participants to assess the impact of coronavirus on gasoil demand, and work on the available options for the coming weeks.

FOREX:  Week-on-week value of Philippine Peso appreciated against the US dollar by  P0.11 to P50.84 from P50.96 in the previous week.  

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DOMESTIC OIL PRICES      

Effective February 1-4,2020, most of the oil companies implemented a price decrease on petroleum products. The price of gasoline has decreased by P1.60/liter, P2.00/liter for diesel and P2.45/liter for kerosene. 

Year-to-date adjustments stand at a net decrease of P2.85/liter for gasoline, P3.90/liter for diesel and P4.44/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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