Oil Monitor as of 26 December 2019

Date published: December 26, 2019

WORLD OIL PRICES  (December 16-20, 2019 trading days)

Dubai crude has increased week-on-week by almost US$2.10 per barrel.  MOPS diesel has also increased by around US$3.25 per barrel. On the contrary, MOPS gasoline has slightly increased by nearly US$0.10 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 trade talks.  

    • 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 December 15. 

    • 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 December 15.

  • US Treasury Secretary Steven Mnuchin said that phase one of the US-China trade deal announced last week by US President Donald Trump was inked and is not subject to renegotiation. He expects the deal to be officially signed in early January 2020.

    • Upward oil price movement has been capped this week due to a lack of detail surround the deal.

    • OPEC, Russia and nine other allies agreed earlier this month to deepen collective output cuts by 503,000 b/d to 1.7 million b/d from January through March.

  • The Asian gasoline market appears to have recovered slightly towards the end of the week, as recent selling pressure eased mid-Thursday.

  • The Asian gasoline market is expected to ease in the first half of January, amid surplus flows from South Korea, while high spot freight rates pressure FOB cash differentials around the region.

  • News of spot gasoil demand emerging from India lifted sentiment in the Asian gasoil market Monday, which traders said was working to drive values higher.

  • Cross-regional flows of gasoil were being watched closely Tuesday amid cautious trade on the back of demand and supply fluctuations from India.

  • Some traders said the Asian gasoil market has been on an uptick boosted by prompt spot demand from India. 

FOREX:  Week-on-week value of Philippine Peso appreciated against the US dollar by    P0.09 to P50.64 from P50.73 in the previous week.   

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DOMESTIC OIL PRICES      

Effective December 24, 2019, most of the oil companies implemented a price increase on petroleum products. Diesel has increased by P1.15/liter and P1.05/liter for kerosene. There was no movement  effected on the price gasoline. 

Year-to-date adjustments stand at a net increase of P6.46/liter for gasoline, P5.32/liter for diesel and P2.26/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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