Oil Monitor as of 02 July 2019

Date published: July 2, 2019

WORLD OIL PRICES  (June 24-28, 2019  trading days)

Dubai crude  has  increased  week-on-week by almost  US$2.50 per barrel.  MOPS   gasoline and diesel have also increased, gasoline by around  US$4.10 per barrel and  diesel  by nearly US$3.25 per barrel. 

Reasons for the Adjustment

  • Crude oil market have reaction on the easing market concerns about the possibility of a US-Iran conflict and declining crude demand especially in view of the trade conflict between the US and China.

    • Weak manufacturing data released on Monday by the Federal Reserve Bank of Dallas added worries about slipping demand for crude oil. 

  • Some analyst see crude supply to remain tights as the OPEC and its allies including Russia (an alliance known as OPEC+) are likely to extend a deal on curbing output when they meet on July 1-2 in Vienna. Venezuela oil production cut is also felt in the market.

  • Saudi Arabia and Russia have OPEC and its allies poised to extend oil supply cuts for longer than expected in the first quarter of 2020, as the bloc seeks to shore up prices in the face of flagging demand growth ahead.

    • Saudi and Russia, the two largest oil producers have endorsed a nine month extension of the 1.2 million b/d cur accord.

  • US gasoline and distillate stockpiles fell in the week ending June 21. The product drawdown comes at the same time as news that the largest and oldest refinery on the U.S. East Coast will be shut after a massive fire caused substantial damage.

  • Little change was observed in the gasoil market in Asia amid largely steady supply-demand fundamentals. However, tighter supplies on the back of scheduled turnarounds, outages and lower run rates at regional refineries supported diesel prices.

FOREX:  Week-on-week  value of Philippine Peso appreciated against the US dollar by P0.47 to P51.39, from P51.86 in the previous week.   

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DOMESTIC OIL PRICES      

Effective 2 July 2019, most of the oil companies implemented a per liter price increase of P1.20 for gasoline, P0.95 for diesel and P1.00 for kerosene. 

Year-to-date adjustments stand at a net increase of P4.90/liter for gasoline, P3.70/liter for diesel and P2.10/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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