Declining crude prices spread holiday cheer

Based on world oil prices monitoring of the Department of Energy, the price of Dubai crude has declined by USD0.90 per barrel week-on-week as of December 18. (Pixabay photo)

MANILA — Petroleum prices in the international market continue with its consumer-friendly direction, even during the part of the year when, traditionally, they should be at their highest.

In the past, a demand for “heating fuel” as a result of winter season only served to enhance price pressures on crude but not so much this year.

In fact, Filipino consumers will be getting an additional PHP1 per liter price reduction on all liquid fuels on Christmas Day.

This is the 11th week that oil firms cut diesel and kerosene prices, while prices of gasoline declined for two straight weeks.

Based on world oil prices monitoring of the Department of Energy, the price of Dubai crude has declined by USD0.90 per barrel week-on-week as of December 18.

It added that according to the December Short-Term Energy Outlook of Energy Information Administration, Brent crude is forecasted at an average of USD61 per barrel by 2019, which is lower by USD10.92 per barrel in its November forecast.

“Asian gasoil market is persistently bearish amid supply overhang and lackluster demand,” DOE oil price monitoring noted.

“Platts outlook for gasoil remained on the downside as the market anticipates heavy flow of gasoil supply from China in December. China is heavily exporting in December because of the additional export quota allocations to refiners,” it said.