Its top 10 crude oil suppliers shipped US$2.9 billion worth of unprocessed petroleum to the Philippines during 2016. That amount represents a massive -61.9% decline from the $7.6 billion in crude imports bought by Filipinos during 2012.
Among continents, Middle Eastern countries accounted for the highest dollar value worth of Filipino imported crude oil supplies in 2016 with Philippines-bound shipments valuated at an estimated $2.5 billion or 85.1% of total import purchases.
Second place was captured by oil suppliers from other Asian countries (specifically Malaysia, South Korea and Indonesia) at a combined 12.2%.
The 4-digit Harmonized Tariff System code prefix for crude petroleum oils is 2709.
Top 10 Crude Oil Suppliers to the Philippines
Below are the 10 countries that represent all sources for crude oil imported into the Philippines during 2016:
- Saudi Arabia: US$978.4 million (33.7% of Philippines imported crude oil)
- Kuwait: $977.3 million (33.6%)
- United Arab Emirates: $404.7 million (13.9%)
- Malaysia: $204.5 million (7%)
- South Korea: $148.1 million (5.1%)
- Qatar: $93.1 million (3.2%)
- Russia: $61.6 million (2.1%)
- Oman: $20 million (0.7%)
- Brunei Darussalam: $13.6 million (0.5%)
- Indonesia: $3.9 million (0.1%)
Among the above countries, only Kuwait increased its exported crude oil sales to the Philippines via its 28.9% gain in value since 2012.
Three Mideast countries were responsible for over four-fifths (81.2%) of Philippines total crude imports for 2016 namely Saudi Arabia, Kuwait and the United Arab Emirates.
Investopedia defines net exports as the value of a country’s total exports minus the value of its total imports. Thus, the statistics below present the surplus that the Philippines earned. In other words, the difference between the value of Filipino crude oil exports and its import purchases for that same commodity.
As shown below, the Philippines posted positive net exports for crude oil during 2016 with just three trade partners.
- Thailand: US$96.4 million (net export surplus for crude oil)
- Singapore: $12.4 million
- Japan: $3,000
Thailand is a profitable trade partner from the perspective that the Asian country generated the highest Filipino surplus in trade of crude oil, thus propelling the Philippines to its highest surplus win for unprocessed petroleum. This positive cashflow confirms the Philippines competitive advantage for this specific product category versus Thailand–as it does for the other two listed trade partners albeit for significantly lower dollar amounts.
The Philippines experienced the highest negative net exports for crude oil trading with the following seven countries during 2016. The statistics below present the deficit between the value of imported crude oil purchases into the Philippines and Filipino exports for that same commodity.
- Saudi Arabia: -US$1 billion (net export deficit for crude oil)
- Kuwait: -$977.3 million
- United Arab Emirates: -$404.7 million
- Malaysia: -$204.5 million
- Qatar: -$93.1 million
- South Korea: -$83.3 million
- Russia: -$61.6 million
Saudi Arabia is a money-losing supplier from the perspective of the Philippines giving it the highest deficit in the global trade of crude oil. In turn, these negative cashflows highlight the competitive disadvantages the Philippines have for this specific product category versus Saudi and other listed oil exporters. However, it also signals opportunities for crude oil-supplying countries that help satisfy the powerful demand needed to help the Filipino economy continue to grow.