WORLD OIL PRICES (July 11-15, 2022 trading days)
The week-on-week price of Dubai crude has decreased by about $6.00/bbl. MOPS gasoline decreased as well by about $16.00 so as MOPS diesel and kerosene by around $8.00 per barrel and $4.00 per barrel, respectively.
Reasons for the Price Adjustment1
- Crude prices had started to rise on fresh buying and supply concerns but fell sharply by mid-week after fresh lockdown fears in China and release of US inflation data.
o China's officials detected the first case of the highly contagious omicron sub type BA.5.2.1 over the weekend in Shanghai, bringing the number of new cases to their highest level since late May.
o The market tanked more on release of the US inflation numbers which stood red hot at 9.1% in June and led to market expectation of a 100-basispoint hike by US Federal Reserve, further fueling recession fears.
o Adding to downward pressure was the bearish EIA data pointing a build in gasoline and distillate stocks.
- The Asian gasoline complex softened on the back of price-induced demand weakness in the region. Bearishness in the market was also induced by a bearish US gasoline market as the inflation prompted further rate hikes effected by the US Federal Reserve.
o Vietnam's gasoline imports slumped 55.8% month on month but jumped 230.8% year on year to 50,055 mt in June as domestic fuel prices continued to rise.
o India's gasoline consumption dipped 1.61% month on month to 2.968 million mt in June amid high retail gasoline prices and is also expected to weaken in July due to floods in several states.
o Moreover, the EIA reported total US gasoline inventories climbed 5.83 million barrels on the week to its highest since May 6 at 224.94 million barrels in the week to July 8, leaving stocks 5.7% behind the five-year average for this time of year.
- The Asian gasoil/diesel market was relatively stable on week as easing regional supply tightness dampened the market sentiment. Platts also noted that demand for gasoil from some countries in the Asia-Pacific region has been showing signs of weakness.
o Vietnam's gasoil inflows fell 14.84% on the month to a six-month low of 388,991 mt (96,599 b/d) in June as high outright prices slowed the procurement. South Korea remains one of the largest suppliers of gasoil to Vietnam and is continuing to keep production and gasoil exports high to capture relatively attractive cracks in the
international market.
o Outflows from Japan are also set to increase as more refining capacity comes online post turnaround season in the country as Japan's refinery runs rebounded to 71.3% over July 3-9, from 67.8% in the previous week as per PAJ data.
o In India, exports of gasoil remain limited even after imposition of export taxes as the
country still makes economic sense to export excess barrels.
FOREX: Philippine peso depreciated week-on-week against the US dollar by P0.72 to P56.24 from P55.53 in previous week.
DOMESTIC OIL PRICES
Effective 19 July 2022, the oil companies implemented a price decrease in gasoline by P5.00 per liter, diesel by P2.00 per liter and kerosene by P0.70 per liter.
These resulted to the year-to-date total adjustments to stand at a net increase of P19.30/liter for gasoline, P34.80/liter for diesel and P29.35/liter for kerosene.se
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