Oil Monitor as of 09 January 2024

Date published: January 10, 2024

WORLD OIL PRICES (January 1-5, 2024, trading days)

The week-on-week price of Dubai crude has decreased by around $1.30/bbl. MOPS gasoline, diesel and kerosene likewise decreased by about $0.80, $0.60, and $0.05 per barrel, respectively.

Reasons for the Price Adjustment

  • Crude prices retreated on stronger dollar, China’s new import quota for 2024 and ample supply globally. However, escalating geo-political concerns and US inventory draw provided a floor to the prices.
    • Crude oil prices had risen due to worries about an escalating conflict in the Red Sea, cutting off supplies after a senior Hamas leader was in killed in Beirut. However, expectations of supply growth globally have weighed on sentiment.
    • The dollar strengthened as Treasury yields rose further pressuring the crude complex.
    • US crude inventory data showed a larger-than-anticipated draw in the last week of 2023 and both Chinese Caixin manufacturing and services Purchasing Managers' Index number depicting better-than anticipated numbers.
  • The Asian gasoline complex strengthened despite the recent release of a new batch of export quotas by China, as some market participants expect Chinese gasoline exports to remain moderated ahead of the Lunar New Year.
  • Fundamentals in the Asian gasoil/diesel market were largely steady as demand is expected to remain stable over January. However, market is cautious over developments in the Red Sea as any further disruptions could lead to more barrels being trapped in the East.
  • Lower export availability from China also lent support to the complex as China is expected to export more jet instead.

FOREX: The week-on-week average of Philippine peso depreciated versus the US dollar by P0.07 to P55.62 from P55.55 in previous week.

DOMESTIC OIL PRICES

Effective 09 January 2024, the oil companies implemented an increase in the price of gasoline, diesel, and kerosene by P 0.10/Liter.

To date, the total adjustment of diesel, and kerosene stands at net decrease of P0.25/liter, and P1.30/liter, respectively.

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: 8840-2187
LPG: 8840-2130
Fuels: 8840-5669
Website: https://www.doe.gov.ph

Pages