Oil Monitor as of 28 August 2019

Date published: August 28, 2019

WORLD OIL PRICES  (August 19-23, 2019 trading days)

Dubai crude has increased week-on-week by around US$1.00 per barrel. On the contrary both MOPS gasoline and diesel have decreased, gasoline by more than US$0.50 per barrel and diesel by US$0.35 per barrel

Reasons for the Adjustment

  • Oil plunged on Friday after China announced new tariffs on U.S. goods, including crude oil. The move reignited fears of economic recession.

  • Traders were worried about the prospects for global oil demand especially amid trade tensions between the U.S and China, the world’s two biggest economies and oil users.

    • U.S. President Donald Trump on Wednesday said he was “the chosen one” to address trade imbalances with China, even as congressional researchers warned that his tariffs would reduce U.S. economic output by 0.3% in 2020.

  • Simmering tensions between U.S. and Iran. Iranian President Hassan Rouhani said if Iran’s oil exports are cut to zero, international waterways will not have the same security as before.

  • The oil market is on a near-term supply deficit, despite the growing supply in the global economy and stagnant oil demand. The market is poised for a major surplus next year.

  • The combination of the OPEC+ cuts, the worsening supply disruptions in Iran and Venezuela, and a slowdown in U.S. shale have all helped to tighten up balances. The second half of 2019 could see a rather significant pace of inventory drawdowns, erasing some of the glut.

 

FOREX:   Week-on-week value of Philippine Peso appreciated against the US dollar by    P0.03 to P52.32, from P52.34 in the previous week.

Other recommended reference sites:

DOMESTIC OIL PRICES      

Effective 27 August 2019, most of the oil companies implemented a price decrease of P0.10/liter for both gasoline and diesel. On the opposite, a P0.10/liter increase has been effected on the price of  Kerosene.

Year-to-date adjustments stand at a net increase of P4.75/liter for gasoline, P3.35/liter for diesel and P1.40/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