Oil Monitor as of 04 November 2019

Date published: November 6, 2019

WORLD OIL PRICES  (October 21-25, 2019 trading days)

Dubai crude has increased week-on-week by almost US$0.70 per barrel. MOPS diesel has also increased by around US$0.70 per barrel while on the opposite MOPS gasoline has decreased by nearly US$1.20 per barrel.

Reasons for the Adjustment

  • Market activity quietened down again on Monday for Middle East sour crudes as falling freight rates put a pause to the rush to secure cargoes for December loading. 

  • Movement in the Middle East sour crude market was subdued on Tuesday, amid reports that cooling freight rates have reopened the arbitrage window for crude to flow into the region from the West.  

  • Crude futures settled higher Thursday, following through on Wednesday's rally on a draw in US inventories. A rise in crude demand from US refiners helped to draw inventories, as did a drop in imports and rise in exports.
  • Crude futures edged higher Friday, boosted by developments from the US-China trade talks. The Office of the US Trade Representative said Friday that the US and China are close to finalizing parts of a trade deal, according to a CNBC report.
  • The Asian gasoline market stood rangebound early Thursday, as participants were cautious in light of support from a greater-than-expected draw in US gasoline stocks.
  • Sentiment in the Asian gasoline market remained buoyed at the end of the trading week, as derivative and physical crack spreads appeared stronger Friday morning, potentially ending three consecutive trading sessions of easing.
  • Asian gasoil markets weakened, weighed down by a closed arbitrage to Europe and the return of refineries from maintenance next month. 
    • Some traders said the market remained dominated by supply build-up concerns in the region, with the arbitrage to send gasoil over to the West still closed. 
    • Sources pointed out that while freight rates are still high, it has been easing over the week and should the trend continue, it would make arbitrage economics much more viable to move cargoes to the West.

FOREX: Week-on-week value of Philippine Peso appreciated against the US dollar by P0.35 to P51.17, from P51.52 in the previous week

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DOMESTIC OIL PRICES      

Effective October 29, 2019, most of the oil companies implemented a price decrease of P0.45/liter for gasoline, P0.10/liter for diesel. No movement has been effected on kerosene. 

Year-to-date adjustments stand at a net increase of P5.16/liter for gasoline, P3.92/liter for diesel and P0.96/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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