Oil Monitor as of 02 January 2020

Date published: January 2, 2020

WORLD OIL PRICES  (December 23-27, 2019 trading days)

Dubai crude has increased week-on-week by almost US$0.95 per barrel. MOPS gasoline and diesel have also increased, gasoline by around US$2.30 per barrel and diesel by nearly US$1.00 per barrel.

Reasons for the Adjustment

  • Oil marches higher amid trade optimism, OPEC+cuts.
    • Crude futures settled higher amid broad market optimism surrounding progress in US-China tradetalks.
    • China announced Sunday it would suspended its plan to impose additional tariffs on a list of US goods that were slated to have been implemented from December15.
    • The move came on the heels of an announcement by US President Donald Trump that the US and China had agreed to "phase one" of a trade deal that would prevent the implementation of further tariffs on Chinese goods slated to take effect December15.
  • Crude-oil prices settled solidly higher Thursday, in thin post holiday action, as a weekly inventory report indicated a bigger-than-expected decline in stockpiles for oil.
    • American Petroleum Institute reported late Tuesday that U.S. crude supplies fell by 7.9 million barrels for the week ended Dec. 20, according to sources. That was more than analysts’ consensus expectations for a drawof 1.83 million barrels, according to Reuters.
    • The weekly inventory report alsos howed a 2.2 million barrel decline in key U.S. oil delivery hub Cushing, Okla.
  • The Asian gasoline market was quiet after the Christmas holiday, with participants awaiting fresh cues amid balanced supply-demand fundamentals.
  • Asian gasoil market remained supported, especially in the prompt, by firm buying interest from India.
    • Indian Oil Corp. was reported to have bought more 10 ppm sulfur high speed diesel. The 40,000 mt cargo was said to have changed hands at a premium of around $5.50/b to the Mean of Platts Arab Gulf 50 ppm sulfur gasoil assessments,CFR.

FOREX:  Week-on-week value of Philippine Peso depreciated against the US dollarby P0.16 to P50.80 from P50.64 in the previous week.

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DOMESTIC OIL PRICES      

Effective December 31, 2019, most of the oil companies implemented a price increase on petroleum products. Gasoline has increased by P0.85/liter, Diesel by P0.50/liter and P0.35/liter forkerosene.

Year-to-date adjustments stand at a net increase of P7.32/liter for gasoline, P5.81/liter for diesel and P2.61/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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