Oil Monitor as of 12 December 2023

Date published: December 14, 2023

WORLD OIL PRICES (December 4-8, 2023, trading days)

The week-on-week price of Dubai crude has decreased by nearly $5.60/bbl. Similarly, MOPS gasoline, diesel and kerosene have also decreased by about $5.30, $5.20, and $4.00 per barrel, respectively.

Reasons for the Price Adjustment1

  •  Crude prices continued to trend lower on demand concerns, despite fall in US stocks, as Chinese economy reflects recovery challenges while Saudi cut January OSPs,
    • Economic indicators from China reflected an economy in deflation, suggesting near-term challenges for Beijing's target of a consumption-led recovery.
    • Underwhelming OPEC+ production cuts and lackluster global economic growth also supported the downtrend.
  • The Asian gasoline complex strengthened on weaker crude prices and limited export availability from China.
    • The widening of Asian gasoline cracks was said to have attributed a plunge in Brent prices, increased buying interest from Indonesia and lower outflow from China in early 2024.
    • Higher gasoline imports by Indonesia in December projected at 12 million barrels, up from previous estimates of over 11 million barrels.
    • A rise in Chinese domestic demand, ahead of the Lunar New Year celebrations, is expected to result in moderate gasoline exports.
    • But steady flow of export volumes from South Korea amid weaker demand this winter counter-balance prices.
  • For Asian gasoil/diesel, poor regional demand, good supply and closed arbitrage lanes continued to characterize the Asian ultra-low sulfur gasoil/diesel market.

FOREX: The week-on-week average of Philippine peso appreciated versus the US dollar by P0.09 to P55.34 from P55.43 in previous week.

DOMESTIC OIL PRICES

Effective 12 December 2023, the oil companies implemented a decrease in the price of gasoline by P1.60 per liter, diesel by P1.85 per liter and kerosene by P1.40 per liter.

These price adjustments resulted in a year-to-date net increase of P11.00/liter for gasoline, P3.85/liter for diesel and P0.54/liter for kerosene.

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

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1 Asia-Pacific Weekly Recap 08 December 2023 by S&P Global Commodity Insights.

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