Oil Monitor as of 24 September 2019

Date published: September 24, 2019

WORLD OIL PRICES  (September 16-20, 2019 trading days)

Dubai crude has increased week-on-week by almost US$4.55 per barrel. MOPS gasoline and diesel have also increased, gasoline by nearly US$6.20 per barrel and diesel by around US$4.30 per barrel.

Reasons for the Adjustment

  • Drone attack on Saudi Arabia state-run oil giant Aramco oil processing facilities at Abqaiq and Khurais resulted to damages and crude oil production suspension of 5.7 million barrels per day or nearly 60% of the country’s average production. Saudi Arabia produced 9.8 million barrels per day in August 2019.

    • Abqaiq, the largest oil field, processing 7 mil b/d

    • Khurais, second largest oil field with capacity to pump around 1.5 million b/d of mainly Arab Light crude

  • The drone attacks caused one of the largest oil spikes in crude oil history, according to Platts. Asian crude benchmark soared more than US$9/bbl (14%) between September 13 and September 17.

  • Fundamentals on gasoline are supported on both the demand and supply front. Market traders continued to focus on tensions in the Middle East, which despite assurances from Saudi Arabia that its crude oil production capacity will return to normal by the end of September, analysts are skeptical as to whether the kingdom can achieve this target.

  • Price volatility remained the hallmark for the Asian diesel/gasoil market Friday, as participants continue to mull over the full impact of last weekend's attacks on Saudi Arabia that has curbed crude oil production. The impact on the country's gasoil production and exports remained unclear, leaving many to trade cautiously..

FOREX:  Week-on-week value of Philippine Peso depreciated against the US dollar by P0.30 to P52.25, from P51.95 in the previous week.

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DOMESTIC OIL PRICES      

Effective 24 September 2019, most of the oil companies implemented a price increase of P2.35/liter for gasoline, P1.80/liter for diesel and P1.75/liter for kerosene.

Year-to-date adjustments stand at a net increase of P7.86/liter for gasoline, P5.82/liter for diesel and P3.76/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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