Oil Monitor as of 12 December 2024

Date published: December 16, 2024

WORLD OIL PRICES (December 2-6, 2024, trading days) 

The week-on-week price of Dubai crude has decreased by around $0.25 per barrel. The international price of diesel and kerosene have also decreased by about $1.40 and $1.20 per barrel, respectively. On the contrary, the price of gasoline has increased week-on-week by about $0.50 per barrel. 

Reasons for the Price Adjustment1

  • Crude oil futures were steady as weak Chinese demand growth and with rising non-OPEC supply countered against news of the OPEC+ alliance delaying a tapering of their voluntary production cuts. 
  • On December 5, the OPEC+ alliance said that it will postpone the easing of its production cuts for another quarter. Under the plan, the gradual rollback of some 2.2 million b/d of voluntary curbs that was set to begin in January will now be implemented from April 2025. 
  • A restriction of US sanctions on Iran further supported the complex as the US targeted the country's oil sector. The US imposed sanctions on 35 entities and vessels associated with Iran’s 'shadow fleet,' which secretly transports Iranian oil. 
  • The Asian gasoline complex rose on expectation of Chinese exports in December to fall on month amid limited available clean product export quota volumes. 
  • Market uncertainty on the back of a surprise announcement by South Korean President Yoon Suk Yeol that martial law would be imposed on the country, added to the strength, although the decision has since been reversed. 
  • The Asian gasoil/diesel market remained soft due to ample supply and tepid buying activity amid the year-end. While China's tax rebate reduction is expected to reduce the country's outflows, poor demand could cap the complex amid abundant supply from India and Middle East. 
  • Meanwhile, the South Korean government announced Nov. 28 that it would extend fuel tax cuts for two more months, until the end of February 2025. Last month, the government extended the tax cut on auto fuels by two months, through the end of December, but lowered the cap on the reduction. 
  • Singapore's onshore commercial stocks of middle distillates dropped 1.26% on the week to 10.24 million barrels over Nov. 28-Dec. 4, snapping five straight weeks of increases, as gasoil and jet fuel/kerosene imports edged lower. 

FOREX: The week-on-week average of Philippine peso appreciated versus the US dollar by P0.48 to P58.33 from P58.80 in the previous week. 

DOMESTIC OIL PRICES

Effective 10 December 2024, oil companies implemented a mixed adjustment on the price of petroleum products. Gasoline has increased by P0.40/liter while diesel and kerosene have decreased by P0.50/liter and P0.75/liter, respectively.

Year-to-date, total adjustment of gasoline and diesel stands at a net increase of P11.75/liter and P9.05/liter, respectively. On the other hand, kerosene has a total net decrease of P2.65/liter.

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1 Asia Pacific 06 December 2024 Weekly Recap by S & P Global Platts Analytics  

For the updated prevailing retail pump prices, please refer to this link:

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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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