Oil Monitor as of 19 June 2019

Date published: June 24, 2019

WORLD OIL PRICES  (June 10-14, 2019  trading days)

Dubai crude  has  increased  week-on-week by almost  US$0.50 per barrel.  MOPS   gasoline and diesel have also increased, gasoline by around  US$0.85 per barrel and  diesel  by nearly US$0.35 per barrel. 

Reasons for the Adjustment

  • Oil prices settled 2.2% higher on Thursday after attacks on two oil tankers in the Gulf of Oman stoked concerns of reduced crude trade flows through one of the world’s key shipping routes.

  • The attacks near Iran and the Strait of Hormuz reignited worries about an impact to flows from the Middle East if insurance companies begin to reduce coverage for voyages through the region and additional shipping companies suspend new bookings, analysts said.  Such a disruption “could further exacerbate the supply problem,” said Andy Lipow, an analyst at Lipow Oil Associates in Houston.

  • Analyst added that the continued US-China trade war will weigh on economic activity, and therefore oil demand growth, in the world’s two largest economies. 

  • "The deteriorating demand outlook is holding back prices, despite these tensions," said John Kilduff, a partner at Again Capital LLC in New York.  Slowing economic conditions have eaten into demand growth, overshadowing ongoing tensions between the U.S. and Iran, Kilduff said. As a result, prices may be stuck in a holding pattern.  

  • Oil price rose about 1% on Friday after attacks on two oil tankers in the Gulf of Oman this week raised concerns about potential supply disruptions, but prices remained on track for a weekly loss on fears that trade disputes will dent global oil demand. 

FOREX:  Week-on-week  value of Philippine Peso  depreciated  against the  US dollar  by    P0.14  to P51.97, from P51.83  in the previous week.   

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DOMESTIC OIL PRICES      

Effective  18  June  2019, most of the oil companies implemented a per liter  price increase of  P0.35  for gasoline, P0.20  for  diesel and  P0.25 for kerosene. 

Year-to-date adjustments stand at a net increase of P3.40/liter for gasoline, P2.20/liter for diesel and P0.65/liter for kerosene.  

For the updated common price, please log on to https://www.doe.gov.ph/price-monitoring-charts?q=retail-pump-prices-metr...

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Email: oilmonitor@doe.gov.ph
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