WORLD OIL PRICES (December 2-6, 2019 trading days)
Dubai crude has decreased week-on-week by almost US$1.75 per barrel. MOPS gasoline and diesel have also decreased, gasoline by around US$1.65 per barrel and diesel by nearly US$0.40 per barrel.
Reasons for the Adjustment
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Oil price decreased on Friday as a meeting between OPEC and its allies later in the day is expected on a formal agreement to more output curbs in early 2020.
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The Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia - a grouping known as OPEC+ - agreed on Thursday to more output cuts to avert oversupply early next year as economic growth stagnates amid the U.S.-China trade war.
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The agreement, which needs to be formally adopted later on Friday, will cut an extra 500,000 barrels per day (bpd) of production, through tighter compliance and some adjustments. The group has been withholding 1.2 million bpd and the increased amount represents about 1.7% of global oil output.
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OPEC meets on tomorrow in Vienna followed by a meeting with Russia and others, a grouping known as OPEC+, on Friday. OPEC+ has been curbing output since 2017 to counter oversupply as a result of booming output in the United States, which has become the world’s biggest producer and is not taking part in cuts. By 2020, rising production in non-OPEC countries such as Brazil and Norway threaten to add to the glut.
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OPEC’s actions in the past have angered U.S. President Donald Trump, who has repeatedly demanded Saudi Arabia to bring oil prices down if it wants Washington to provide Riyadh with military support against arch-rival Iran.
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The Asian gasoline complex strengthened at the end of the trading week, as sentiment held firm against a backdrop of a supported supply-demand fundamentals.
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The Asian gasoil market had an uptick, driven by strong buying interest for the middle distillate. Several market observers attributed the recent recovering demand to blending requirements to meet IMO 2020 bunker fuel specifications. Other traders said more demand has emerged with lowering gasoil prices.
FOREX: Week-on-week value of Philippine Peso depreciated against the US dollar by P0.14 to P50.93 from P50.79 in the previous week.
Other recommended reference sites:
- http://www.aip.com.au/pricing
- http://www.indexmundi.com/commodities/?commodity=crude-oil-dubai
- https://www.quandl.com/data/ODA/POILDUB_USD-Dubai-Crude-Oil-Price
DOMESTIC OIL PRICES
Effective December 8 and 10, 2019, most of the oil companies implemented a price decrease on petroleum products. Gasoline has decreased by P0.30-P0.40/liter, P0.10/liter for diesel and P0.30-P0.40 for kerosene.
Year-to-date adjustments stand at a net increase of P6.47/liter for gasoline, P3.76/liter for diesel and P0.61/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