WORLD OIL PRICES (May 30-June 3,2022 trading days)

The price of Dubai crude has increased by roughly $3.20/bbl week-on-week. MOPS gasoline and MOPS diesel prices rose as well by around $16.00 per barrel and $6.50 per barrel, respectively.

Reasons for the Price Adjustment¹

• After staying choppy and rangebound last week, crude prices rose this week as European Union (EU) has agreed on a ban of Russian seaborne imports in the next 6 months while exempting pipeline imports, making the supply outlook further tighter than present. The ban will immediately impact 75% of Russian imports in the EU while affecting 90% imports by the end of the year.

o The bullishness in crude prices was also supported by eased lockdowns in Beijing and Shanghai, potentially unleashing pent-up demand, coupled with various stimulus measures rolled out by the government to support consumption.

• However, the price rally faced headwinds as OPEC+ agreed at its June 2 meeting to hike output by 648,000 b/d for July and another 648,000 b/d for August, up 50% from its 432,000 b/d monthly increase in recent months with Saudi Arabia reportedly indicating to Western allies that it was prepared to raise output beyond its pledged quota to cover any substantial fall in Russian production.
   
• The Asian gasoline market was supported by a strong US gasoline market due to healthy demand around the Memorial Day weekend and on set of summer driving season.

• The Asian gasoil/diesel market was supported following the agreement of EU leaders to ban Russian oil imports by sea. The agreement, which was reached at a European Council summit over May 30-31, is expected to hit 1.2 million b/d of refined product imports, including diesel, by the end of 2022.

o Although gasoil exports are rising from Korea with April's outflows rising 1.8% month on month and 12.6% year on year to a six-month high of 16.70 million barrels as per KNOC data, supplies in the region have remained tight as peak seasonal refinery turnarounds in Japan are curbing diesel output. Japan's exports of gasoil fell 27.7% on the week to 792,370 barrels over May 22-28 on the back of lower refinery run rates in the region.

FOREX: Philippine peso depreciated week-on-week against the US dollar by P0.18 to P52.50 from P52.32 in previous week.

DOMESTIC OIL PRICES

Effective 07 June 2022, the oil companies implemented a price increase in domestic oil products. Gasoline by P2.70 per liter, P6.55 per liter for diesel and kerosene by P2.45 per liter.

These resulted to the year-to-date adjustments to stand at a net increase of P26.55/liter for gasoline, P36.85/liter for diesel and P33.10/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.

Other recommended reference sites:
    • http://www.aip.com.au/pricing
    • http://www.indexmundi.com/commodities/?commodity=crude-oil-dubai
    • https://www.quandl.com/data/ODA/POILDUB_USD-Dubai-Crude-Oil-Price

For more information, call the

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

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