Oil Monitor as of 17 September 2019

Date published: September 17, 2019

WORLD OIL PRICES  (September 9-13, 2019  trading days)

Dubai crude has increased week-on-week by almost US$2.20 per barrel. MOPS gasoline and diesel have also increased, gasoline by around US$4.00 per barrel and diesel by nearly US$2.40 per barrel.

Reasons for the Adjustment

  • Oil prices jumped on Thursday buoyed by moves to ease trade tensions between US and China.

    • U.S. President Donald Trump tweeted that he will be postponing the imposition of 5% extra tariffs on Chinese goods in two weeks “as a gesture of goodwill.”

    • The decision came after China said earlier this week that it will exempt a range of U.S. goods from 25% of extra tariffs, easing tensions between the two sides as they prepare in-person trade negotiations in Washington in October.

    • Yet, there is also uncertainty on a possible trade deal between the U.S. and China. Reportedly, a trade cease-fire could lead to even more aggressive actions.

  • Larger-than-expected decrease/draw in US crude oil and gasoline inventories (the lowest in nearly a year).

    • Data released by the American Petroleum Institute (API) highlighted a fall in US crude inventories by 7.2 million barrels in the week ended 6 September to 421.9 million, against analysts’ expectations of a decrease of 2.7 million barrels.

  • Expectations of a recent Fed rate cut led to a weaker dollar and tighter expectations on the crude oil supply side as the Saudi Energy Minister pledge to maintain production cuts, offsetting weak demand for crude oil in the short term.

FOREX:   Week-on-week value of Philippine Peso appreciated against the US dollar by P0.12 to P51.95, from P52.07 in the previous week.

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DOMESTIC OIL PRICES      

Effective 17 September 2019, most of the oil companies implemented a price increase of P1.35/liter for gasoline, P0.85/liter for diesel and P1.00/liter for kerosene.

Year-to-date adjustments stand at a net increase of P5.51/liter for gasoline, P4.02/liter for diesel and P2.01/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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