Source: https://www.doe.gov.ph/oil-monitor
WORLD OIL PRICES (October 19-23, 2020 trading days)
Dubai crude has increased week-on-week by a little of US$0.03/bbl. On the contrary MOPS gasoline and diesel have decreased; MOPS gasoline by about US$0.15 per barrel and MOPS diesel by around US$0.90 per barrel.
Reasons for the Adjustment
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Libya plans to ramp up crude production to 1 million b/d (MMB/D) in four weeks following the September United Nations-backed ceasefire in the country. The recently peace agreement lifted an eight-month blockade by the Libyan National Army on most crude exports.
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Libya National Oil Corp. confirmed in reports last week that production would rise to 800,000 b/d in two weeks and to about 1 MMB/D in four weeks. As of October 20, Libyan production had risen to more than 500,000 b/d according to S&P Global Platts. Libya produced about 1.6 MMB/D of crude in normal situation.
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Some analysts see the rapid rising of Libyan barrels to be an issue to the OPEC+ group as it could disrupt its quest to balance the oil market. Libya’s additional crude could change the story back to oversupply concerns as crude demand outlook weakens, as the world continues on restrictive measures and lockdowns to contain COVID-19.
- OPEC+ tapered production cut to 7.8 MMB/D from 9.7 MMB/D in August, and is scheduled to roll back further to 5.8 MMB/D starting in January. However, with a second wave of coronavirus infections weighing on the oil market’s outlook, many OPEC+ ministers are expected to keep the current cuts in place.
- Asian demand for Middle East crude was noted to have been recently increasing in view of higher demand by key importers-China and India for the December-loading cycle. Improved refining margins in October also helped boosted demand.
- The Asian gasoline market ended the week on a soft note amid lackluster demand and greater supply, with more cargo offerings from India. Platts expect regional gasoline supply in an upturn as runs begin to climb in November after the maintenance.
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The Asian gasoil/diesel market ended the week also on a soft note with oil industry sources reiterating that low demand and good supplies were still weighing on the market complex. Refinery runs are set to begin rising in November following the conclusion of October maintenance works. Platts however noted that healthy outflows of gasoil from Singapore to Australia, Malaysia and Myanmar were recorded in the past week.
FOREX: Philippine peso depreciated week-on-week against the US dollar by P0.02 to P48.58 from P48.56 in previous week.
Other recommended reference sites:
• http://www.aip.com.au/pricing;
• http://www.indexmundi.com/commodities/?commodity=crude-oil-dubai
• https://www.quandl.com/data/ODA/POILDUB_USD-Dubai-Crude-Oil-Price
DOMESTIC OIL PRICES
The oil companies implemented their price adjustments effective today, 27 October 2020. Diesel and kerosene have decreased; diesel by P0.25 per liter and kerosene by P0.15 per liter. No price movement has been effected on the price of gasoline.
These resulted to the total year-to-date adjustments to stand at a net decrease of P4.67/liter for gasoline, P10.26/liter for diesel and P13.59/liter for kerosene.
For the updated prevailing retail pump price, please browse this link: https://www.doe.gov.ph/price-monitoring-charts?q=retail-pump-prices-metro-manila.
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For more information, call the
Department of Energy
Pricing: 840-2187
LPG: 840-2130
Fuels: 840-5669
SMS: (0915) 4469421
Email: oilmonitor@doe.gov.ph
Website: https://www.doe.gov.ph