Oil Monitor as of 15 October 2019

Date published: October 16, 2019

WORLD OIL PRICES  (October 7-11, 2019 trading days)

Dubai crude has decreased week-on-week by almost US$0.40 per barrel. MOPS diesel has  also decreased by around  US$0.20 per barrel while  on the contrary,  MOPS gasoline has increased by nearly US$0.80 per barrel.

Reasons for the Adjustment

  • Reports emerged on Friday afternoon Singapore time of an explosion on an Iranian oil tanker in the Red Sea off the coast of Jeddah, Saudi Arabia. The ship reportedly caught fire after a rocket attack from an unidentified source. This incident is the latest in a series of similar attacks on tankers in the Middle East amid heightened tensions between Iran and the U.S. and its Gulf allies. 

  • Brent futures jumped by about $1/Bbl from $59.50/Bbl to $60.50/Bbl in the immediate aftermath of the news. While this incident alone is unlikely to have a major impact on prices, it serves a reminder of continued geopolitical risks to supply despite the rapid recovery of Saudi production after the September 14 attacks on its processing facilities. The potential for conflict between the key actors in the Middle East remains high, particularly with Turkey’s new military offensive in Syria -an area where both the U.S. and Iran are active participants.

  • Asian gasoline fundamentals are tighter on robust Indonesian demand and extensive refinery maintenance this month. Further support came from bullish U.S. signals. Weekly data showed total U.S. gasoline stocks drew by 1.2 MMB to 228.7 MMB-7.4 MMB lower than last year. 

  • Refining margins for high-octane gasoline soared to new multi-year highs Tuesday, a result of prolonged tightness in the supply of octane boosters. 

  • Asian gasoil market retained its strength mid-week, with traders saying that a tussel for cargoes seemed to be shaping up between Asia and Europe. 

FOREX:   Week-on-week value of Philippine Peso appreciated against the US dollar by    P0.11 to P51.74, from P51.85 in the previous week.

Other recommended reference sites:

DOMESTIC OIL PRICES      

Effective October 15,  2019, most of the oil companies implemented a price decrease of P0.10/liter for diesel and P0.40/liter for kerosene. On the opposite, gasoline price has  increased by  P0.25/liter.

Year-to-date adjustments stand at a net increase of P5.86/liter for gasoline, P4.12/liter for diesel and P1.21/liter for kerosene.

For the updated prevailing retail pump price, please browse this link: https://www.doe.gov.ph/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