Oil Monitor as of 30 July 2019

Date published: August 22, 2019

WORLD OIL PRICES  (July 22-26, 2019 trading days)

Dubai crude  has  decreased  week-on-week by nearly  US$1.00 per barrel. MOPS   gasoline has also decreased   per barrel by  almost US$3.40 while MOPS diesel has slightly increased  by about  US$0.02 per barrel.

Reasons for the Adjustment

  • Crude prices settled lower, shedding risk premiums, as Gulf Coast oil operations normalized after Hurricane Barry left inland.

  • Russian oil output reportedly returned to the level allowed in the OPEC+ agreement after dropping at the start of the month.  

    • Russia committed to a production level of 11.191 million b/d under the OPEC+ deal which runs to the end of March 2020.

  • Easing tensions in the Middle East also placed a cap on crude prices during the week.

    • UK government sent a mediator to Iran to start negotiations for release of the British-flagged Stena Impero which was seized by Revolutionary Guard forces in the Strait of Hormuz last week.

  • Friday news revealed that the US Treasury extended until October 25 a waiver allowing Chevron and four US oil services companies to continue working in Venezuela's oil sector.

    • The potential end of waivers is expected to further erode Venezuelan oil output, according to the US Energy Information Administration.

    • Venezuelan oil production averaged 760,000 b/d in June, according to the latest Platts OPEC survey, 680,000 b/d below its June 2018 output and 1.64 million b/d below its output in June 2015.

  • Gasoline market in Asia sustained weakness in trading sessions over the week likely due to news on the fresh batch of Chinese export quota.

  • The Asian gasoil market continued to gain momentum on the back of ongoing supply tightness.

 

FOREX:  Week-on-week value of Philippine Peso depreciated against the US dollar by  P0.15  to P51.16, from P51.01 in the previous week.

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DOMESTIC OIL PRICES      

Effective   30 July 2019, most of the oil companies implemented a per liter  price increase/decrease on petroleum products. Gasoline has decreased by  P0.95, while both diesel and kerosene have increased  by  P0.15 and  P0.10, respectively. 

Year-to-date adjustments stand at a net increase of P5.00/liter for gasoline, P3.95/liter for diesel and P2.15/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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