Oil Monitor as of 17 January 2024

Date published: January 17, 2024

WORLD OIL PRICES (January 8-12, 2024, trading days)

The week-on-week price of Dubai crude has increased by around $0.35/bbl. MOPS diesel and kerosene have also increased by about $1.20, and $1.40 per barrel, respectively. On the contrary, MOPS gasoline has decreased by nearly $0.20 per barrel.

Reasons for the Price Adjustment1

  • US crude oil stocks climbed 1.34 million barrels to 432.4 million barrels in the week to Jan. 5, data from the EIA released late Jan. 10, putting stocks 1.8% behind the five-year average for this time of year. An additional 610,000 barrels were added to the nation's Strategic Petroleum Reserve, putting volumes there at a fresh seven-month high.
  • Crude prices were also supported through the Asian session by expectations that OPEC and its allies would maintain production cuts this year amid fresh supplies from non-members.
  • Brent prices were higher on escalating Middle East tensions and uncertainty of rate cuts by US Fed, offsetting surprise US stock build. Higher supply indications from US and China capped the price rally.
  • The Asian gasoline complex fell, amid a narrowing US-RBOB Brent crack, on the back of a gasoline stock build up, however some market participants expect Chinese gasoline exports to fall ahead of the Lunar new year festivities providing floor to the market. Commodity Insights expects China to export 210,000 b/d of gasoline in January 2024.
  • Also, Asian gasoline prices are expected to see some downward pressure on the back of firm exports from South Korea in January which is expected to export around 1.2 million mt of gasoline.
  • Fundamentals in the Asian gasoil/diesel market were largely steady. Regional demand for ultra-low sulfur gasoil was seen progressing at a slow pace while lackluster East-West arbitrage economics weighed on market sentiment.

FOREX: The week-on-week average of Philippine peso depreciated versus the US dollar by P0.33 to P55.95 from P55.62 in previous week.

DOMESTIC OIL PRICES

Effective 16 January 2024, the oil companies implemented an increase in the price of gasoline by P 0.30/liter and P 0.90 per liter increase on the price of diesel and kerosene.

As of 2024, the net adjustment of gasoline and diesel stands at a net increase of P0.30/liter and P0.65/liter, respectively. Kerosene on the other hand, has a net decrease for the year of P0.40/liter.

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

Other recommended reference sites:

 

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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