Oil Monitor as of 16 August 2022

Date published: August 17, 2022

WORLD OIL PRICES (August 8-12, 2022 trading days)

The week-on-week price of Dubai crude has decreased by around $1.60/bbl. MOPS gasoline has also decreased by about $0.60 per barrel as well as MOPS diesel and kerosene by nearly $3.30 per barrel and $1.50 per barrel, respectively.

Reasons for the Price Adjustment1

  • Crude prices saw a fresh uptick since the beginning of this week with bullish US unemployment rate fell to the lowest level since the 1960s. Adding to the optimism was the US inflation data which was 8.5% in July, a notably slower rate than the 9.1% in June, according to the US Bureau of Labor Statistics on 10 August 2022, with US gasoline demand rising to 9.12 million b/d, up from 8.54 million b/d the week prior, representing a 6.8% jump, as per the EIA data
  • Moreover, the International Energy Agency (IEA) revised 2022 oil demand growth estimate, hiking the projection by 380,000 b/d to 2.1 million b/d added further bullishness to the market. However, EIA data of increased US commercial crude stocks that climbed surprisingly by 5.5 million barrels in the week ended Aug. 5 to about 432 million barrels capped the price uptick.The prices saw a minor dip as there was profit taking in the market.
  • Asian gasoline cracks2 rose from last week as the Asian market followed a strengthening US gasoline market despite weak regional fundamentals amid slowing demand and healthy inventories.
    • Singapore's commercial stockpile of light distillates rose 1.44% on the week Aug. 4-10 on the back of a 71.12% decline in gasoline exports, mostly to Indonesia and Malaysia.
    • Indonesia is only expected to import 9-10 million barrels of gasoline in September, far lower than in June when gasoline import volumes were at a peak of 13-14 million barrels.
  • The Asian gasoil/diesel crack fell on week as there have been ample near-term supplies with some demand weakness in some regional economies. Despite softening of distillate cracks, refineries are keeping production and export levels high to leverage on the still attractive cracks of the middle distillate, which has added to near-term supply availability in the Asian gasoil market as reported by Platts.
    • Taiwan and India have increased sell tenders while South Korea has increased number of cargoes.
    • There was even a sell side tender from PRefChem in Malaysia for 10 ppm gasoil.
    • In Japan, exports of gasoil continued to trend higher, rising 2% on week to 1.16 million barrels over July 31-Aug. 6 as per PAJ data.

FOREX: Philippine peso depreciated week-on-week against the US dollar by P0.09 to P55.58 from P55.49 in previous week.

DOMESTIC OIL PRICES

Effective 16 August 2022, the oil companies implemented a price decrease in gasoline by P0.10 per liter, diesel by P1.05 per liter and kerosene by P0.45 per liter.

These resulted to the year-to-date total adjustments to stand at a net increase of P17.45/liter for gasoline, P29.10/liter for diesel and P24.30/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
2 A crack spread measures the difference between the purchase price of crude oil and the selling price of finished products, such as gasoline and distillate fuel, that a refinery produces from the crude oil

 

 

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