Oil Monitor as of 06 November 2019

Date published: November 6, 2019

WORLD OIL PRICES  (October 28-November 1, 2019 trading days)

Dubai crude has increased week-on-week by almost US$0.45 per barrel. On the contrary, MOPS gasoline and MOPS diesel have decreased, gasoline by around US$0.15 per barrel and diesel by nearly $0.60 per barrel.

Reasons for the Adjustment

  • Oil prices fell during the week trading following a sharp U.S. crude inventory build that added to worries about a possible delay in resolving the U.S.-China trade war. The United States and China were continuing to work on an interim trade agreement, but it may not be completed in time for U.S. and Chinese leaders to sign it next month, a U.S. administration official said. It is noted that this trade war has hurt global oil demand. 

    • US commercial crude oil inventories, excluding the Strategic Petroleum Reserve, increased 5.7 million barrel for the week ended Oct. 25, the US-EIA reported, compared with analysts’ expectations for a 494,000-barrel build.

  • Oil benchmarks on the New York and London markets settled slightly lower Oct. 29, which analysts attributed to continuing uncertainty about supply and demand. The OPEC basket of crudes for Oct. 29 was also down by 21¢.
  • West Texas Intermediate (WTI) and Brent crude oil prices finished lower Thursday amid negative signs about the direction of the U.S. economy and pessimism about progress on U.S.-China trade.
  • Bearish supply signals continued to keep the Asian gasoline markets under pressure following a slide of spot offers from the North Asia suppliers.
  • The week’s demand for the medium sulfur grade has been strong, attributed to a keen buying appetite for 500 ppm sulfur gasoil cargoes, with traders saying that regional demand from Malaysia and Vietnam have been providing support.
    • Both Malaysia and Vietnam have scheduled refinery turnarounds, which has resulted in both countries importing more gasoil to make up for the shortfall in domestic production volumes. 
  • Fundamentals in the Asian gasoil market were holding steady at the end of the week, with supply and demand balances remaining largely unchanged. 

FOREX:  Week-on-week value of Philippine Peso appreciated against the US dollar by P0.17 to P51.00, from P51.17 in the previous week.

Other recommended reference sites:

DOMESTIC OIL PRICES      

Effective November 3 and 5, 2019, most of the oil companies implemented a price decrease of P0.10/liter for gasoline, P0.25/liter for diesel and P0.10/liter for kerosene.

Year-to-date adjustments stand at a net increase of P5.06/liter for gasoline, P3.67/liter for diesel and P0.86/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

Pages