Oil Monitor as of 14 August 2019

Date published: August 14, 2019

WORLD OIL PRICES  (August 5-9, 2019 trading days)

Dubai crude has decreased week-on-week by around US$4.55 per barrel. MOPS gasoline and diesel have also decreased, gasoline by almost US$3.10 per barrel and diesel by nearly US$4.80 per barrel.

Reasons for the Adjustment

  • The price of crude oil declined this week as investors continued to worry about demand. They believe that the ongoing trade war between the US and China will affect demand. This is mostly because of the huge differences between the US and China.

    • The crude market is currently affected by trade tensions after the US President Donald Trump announced 10% tariffs on additional Chinese goods, effective 1 September. The subsequent decrease in Chinese currency triggered fresh fears.

    • Gene McGillian, vice-president at consultancy Tradition Energy, said: 'The market continues to trade lower on concerns about demand growth and the idea that economic growth can be impacted by the trade war.

  • Recently, tensions in the Middle East have increased following attacks on tankers and US drones raising concerns of possible disruptions in oil supplies. However, reports indicating larger-than-expected drop in US crude stocks provided some support to the crude prices.

  • The Asian gasoil market slipped on weaker fundamentals amid increasing supply coupled with bearish demand, industry sources said Thursday. "There are quite a lot of [gasoil] cargoes coming into Singapore," a trader said.

  • The deteriorating global economic situation has seen rate cuts in emerging markets such as India and Thailand following a rate cut in the US as the oil market moves to price in risks around a possible recession.

 

FOREX:  Week-on-week value of Philippine Peso depreciated against the US dollar by P0.94 to P52.01, from P51.07 in the previous week.

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DOMESTIC OIL PRICES      

Effective 13 August 2019, most of the oil companies implemented a price decrease of P 0.50/liter for gasoline, P1.10/liter diesel and P1.30/liter for kerosene.

Year-to-date adjustments stand at a net increase of P4.50/liter for gasoline, P2.85/liter for diesel and P0.85/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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