Oil Monitor as of 02 July 2024

Date published: July 3, 2024

WORLD OIL PRICES (June 24-28, 2024, trading days)

The week-on-week price of Dubai crude has increased by around $0.70 per barrel. The international price of gasoline, diesel and kerosene have also increased week-on-week by about $1.50, $1.00 and $0.80 per barrel, respectively.

Reasons for the Price Adjustment1

  • Oil prices moved higher on escalated Red Sea tensions despite higher-than-expected US inventory data.
    • The recent escalation of Houthi attacks in Red Sea shipping and persistent cross-border attacks between Israeli and Hezbollah forces pose growing risks to regional stability and could potentially impact crude oil exports from the Middle East.
  • Ukrainian drone attack on Russian oil infrastructure and refineries also contributed to the rising crude prices.
  • However, these were countered by higher-than-expected US-EIA inventory data countered as the country’s crude oil inventories climbed to eight-week highs in the week ended June 21, amid weaker refinery demand and slower exports
  • For Asian gasoline complex, it strengthened on the back of a widening US-RBOB Brent crack, despite a rise in US stocks. EIA data showed gasoline inventory uptick by 2.654 million barrels on the week to 233.886 million barrels in the week ended June 21.
  • Asian gasoil/diesel complex saw the supply situation become more relaxed as arbitrage opportunities between the Persian Gulf to Europe were opened with an improved European market and the fall in freight rates.
  • Lower exports from China and South Korea in July are expected to support the market amid seasonal increase in domestic demand and low refinery runs in China.

FOREX: The week-on-week average of Philippine peso depreciated versus the US dollar by P0.04 to P58.78 from P58.74 in previous week.

DOMESTIC OIL PRICES

Effective 02 July 2024, the oil companies implemented an increase on the prices of gasoline, diesel and kerosene by P0.95, P0.65 and P0.35 per liter, respectively.

Year-to-date, total adjustment of the said respective products stand at net increase of P9.25/liter, P8.40/liter and P1.75/liter, respectively.

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1 Asia Pacific 28 June 2024 Weekly Recap by S & P Global Platts Analytics

For the updated prevailing retail pump prices, please refer to this link:

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For more information, call the

Department of Energy
Pricing: 840-2187
LPG: 840-2130
Fuels: 840-5669
Website: https://www.doe.gov.ph

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