Oil Monitor as of 11 June 2024

Date published: June 13, 2024

 

WORLD OIL PRICES (June 3-7, 2024, trading days)

The week-on-week price of Dubai crude has decreased by around $4.70 per barrel. The international price of gasoline, diesel and kerosene have also decreased week-on-week by about $2.80, $4.00 and $3.70 per barrel, respectively.

Reasons for the Price Adjustment1

  • Crude oil futures moved lower as concerns of rising supply later in 2024 sent prices to four-month lows. The phasing out of the voluntary cuts by OPEC+ starting in October 2024 appears to be weighing on the market.
  • According to the report of Energy Information Administration (EIA) dated 05 June, the US commercial crude stocks climbed 1.23 million barrels to 455.92 million barrels in the week ended May 31. The build was in line with seasonal norms and kept inventories 4% behind the five-year average, steady from the week prior.
  • The Asian gasoline complex softened, tracking a slightly narrowing US RBOB-Brent crack and amid an increase in US inventories. However, demand from Mexico and lower crude prices strengthened the cracks.
    • US gasoline inventories rose 2.1 million barrels on the week to 230.946 million barrels in the week ended May 31, the latest data from the US-EIA showed.
  • Platts reported as well that Chinese and South Korean cargoes were seen offered in the region, resulting an oversupply of both oxygenated and non-oxygenated Asian gasoline.
  • Looking forward, gasoline complex is expected to stabilize and that prices will gradually move higher as the US driving season set to begin.
  • For gasoil/diesel, the persistent oversupply situation kept the Asian gasoil complex under pressure. Moreover, middle distillates2 stocks in the Middle East reportedly increased 13.4% on the week amid subdued demand. Russian gasoil cargoes floating on water were also said to be adding to the supply glut.

FOREX: The week-on-week average of Philippine peso depreciated versus the US dollar by P0.33 to P58.63 from P58.30 in previous week.

DOMESTIC OIL PRICES

Effective 11 June 2024, the oil companies implemented a decrease on the prices of petroleum products. Gasoline, diesel and kerosene prices have decreased by P0.60, P1.20 and P1.30 per liter, respectively.

Year-to-date, total adjustment of gasoline and diesel stand at net increase of P6.05/liter and P4.25/liter, respectively. Kerosene, on the other hand, has a net decrease of P1.55 per liter.

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1 Asia Pacific 07 June 2024 Weekly Recap by S & P Global Platts Analytics

2 Jet fuel, diesel fuel, and the lighter grades of fuel oil are collectively referred to as middle distillate fuels, from the fact that they are taken off the middle of a distillation column.

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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