Oil Monitor as of 26 November 2019

Date published: November 27, 2019

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

  • 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.

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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

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