Oil Monitor as of 23 July 2019

Date published: August 22, 2019

WORLD OIL PRICES  (July 15-19, 2019 trading days)

Dubai crude  has  decreased  week-on-week by almost  US$1.00 per barrel. MOPS   gasoline and diesel have also decreased  per barrel by  around  US$0.50  and  US$0.25, respectively. 

Reasons for the Adjustment

  • Oil prices fell this week on rising fears of weakening demand and renewed supply surplus supported by the following news: 

    • Iran has offered a deal with the U.S. that would include permanent enhanced nuclear inspections in return for the U.S. lifting sanctions.  The offer comes shortly after the U.S. downed an Iranian drone in the Persian Gulf on Thursday.

    • The US-IEA lowered its 2019 demand growth forecast to 1.1 mb/d, and may cut it again if the global economy continues to cool down.  It’s the latest in a series of downward revisions. As China and some advance economies are experiencing its slowest economic growth in the last three decades. 

  • A cooling economy growth and rise in refining capacity could lead to another gasoline surplus in late 2019 and early 2020. 

  • A sharp rise in U.S. gasoline stockpiles leads to weak demand during the U.S. driving season. US-EIA data showed a larger-than–expected drawdown in crude inventory stockpiles last week.

  • Weakness in U.S. equities markets and over expectations of a production rise from the U.S. Gulf of Mexico region, after last week’s Hurricane Barry disrupted production.    

 

FOREX:  Week-on-week value of Philippine Peso appreciated against the US dollar by P0.29 to P51.01, from P51.30 in the previous week.   

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DOMESTIC OIL PRICES      

Effective 23 July 2019, most of the oil companies implemented a per liter price decrease on petroleum products. Gasoline has decreased by  P0.25, diesel by P0.20 and kerosene by P0.40.

Year-to-date adjustments stand at a net increase of P5.95/liter for gasoline, P3.80/liter for diesel and P2.05/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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