Oil Monitor as of 11 March 2020

Date published: March 11, 2020

WORLD OIL PRICES  (March 2-6, 2020 trading days)

Dubai crude has decreased week-on-week by around US$1.70 per barrel.   MOPS gasoline and MOPS diesel have also decreased, gasoline by about US$3.40 per barrel and diesel by nearly   US$2.25 per barrel. 

Reasons for the Adjustment

  • OPEC and its coalition partners are meeting in Vienna on March 5-6 to discuss deeper cuts to crude production amid weaker global demand caused by the COVID-19 outbreak, which has spread to 72 countries outside China.
  • Saudi Arabia has for weeks urged fellow partners to embrace further reductions. An additional 600,000 b/d in cuts have been touted, although some reports suggest the reduction could be 1 million b/d should all participants agree.
  • Russia is seen as far more resilient to lower oil prices and has steadfastly refused to commit to any further restrictions on its production.
  • OPEC agreed to slash its production quotas by 1 million b/d, contingent on Russia and nine other non-OPEC allies agreeing to shrink theirs by 500,000 b/d, for the rest of the year, amid weaker global demand caused by the COVID-19 outbreak.
  • However, with Russia refusing to go along with the deal, the 23-country OPEC+ coalition's current 1.7 million b/d production quotas will expire at the end of the month, potentially unleashing a price-tanking market share battle.
  • Not all OPEC+ members were ready to give up, with many still holding the door open for Russia, and some suggesting the Joint Ministerial Monitoring Committee could meet later this month.
  • Sentiment in the Asian gasoline market weakened further Friday as more supply emerged in the spot market while demand remained weak.
  • Weakening fundamentals in the Asian gasoil market weighed heavily on the middle distillate product Thursday as concerns over evaporating demand and ample supplies took center stage.

FOREX:  Week-on-week value of Philippine Peso appreciated against the US dollar by P0.29 to P50.69 from P50.97 in the previous week.

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DOMESTIC OIL PRICES      

Effective March 7,9 and 10 2020, most of the oil companies implemented a price decrease on petroleum products. The price of gasoline has decreased by P1.20/liter, diesel by  P0.75/liter  and  P1.05/liter for kerosene.

Year-to-date adjustments stand at a net decrease of P5.10/liter for gasoline, P6.75/liter for diesel and P8.30/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

For more information, call the

Department of Energy
Pricing: 840-2187
LPG: 840-2130
Fuels: 840-5669
SMS: (0915) 4469421
Email: [email protected]
Website: https://www.doe.gov.ph

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