WORLD OIL PRICES (November 18-22, 2019 trading days)
Dubai crude has increased week-on-week by almost US$0.35 per barrel. In contrast, MOPS gasoline and diesel have decreased, gasoline by around US$0.90 per barrel and diesel by nearly US$0.50 per barrel.
Reasons for the Adjustment
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Oil prices drop on new concerns over US-China trade deal prospects Oil prices have declined on fresh tensions over the ongoing trade deal prospects between the US and China that the long-awaited deal may get delayed further.
- "The volatility today can be attributed to concerns surrounding the „phase one‟ of the US-China trade deal being delayed into 2020."
- The current indication is more than enough to offset news of a likely extension of production cuts by OPEC producers that lead to an increase in prices in the previous session on the prospect of tight crude supply.
- Data released by the Energy Information Administration (EIA) highlighted an increase in US crude inventories by a less-than-expected 1.4 million barrels (Mmbbls) in the week ended 15 November. Crude stocks at the US delivery hub of Cushing, Oklahoma were down by 2.3Mmbbls.
- Sentiment in the Asian gasoline market was firm Thursday as gasoline crack spreads soared amid heightened geopolitical tensions.
- The strength was also demonstrated on the physical end, with indications at 0200 GMT showing the FOB Singapore 92 RON gasoline crack against front-month ICE Brent crude futures at its highest in five trading sessions at $10-$10.10/b, compared with Wednesday's assessment at $9.25/b.
- Industry sources described the Asian gasoil spot market to be largely steady, amid thin trades, with the bulk of activity largely centered around negotiations for 2020 term barrels.
- Kuwait Petroleum Corp. for one, has settled term supplies of 500 ppm sulfur gasoil at a premium of between 85 cents/b and 95 cents/b to the Mean of Platts Arab Gulf 500 ppm sulfur gasoil assessments, FOB.
FOREX: Week-on-week value of Philippine Peso depreciated against the US dollar by P0.06 to P50.82, from P50.76 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 November 24 and 26, 2019, most of the oil companies implemented a price decrease/rollback for gasoline, diesel and kerosene. Gasoline has decreased by P0.20/liter while a P0.10/liter decrease have been implemented for both diesel and kerosene prices.
Year-to-date adjustments stand at a net increase of P6.52/liter for gasoline, P3.16/liter for diesel and P0.44/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