Oil Monitor as of 28 June 2022

Date published: June 28, 2022

WORLD OIL PRICES (June 20-24, 2022 trading days)

The week-on-week price of Dubai crude decreased by about $8.40/bbl. MOPS gasoline and MOPS diesel have also fallen by around $3.00 per barrel and $0.70 per barrel, respectively.

Reasons for the Price Adjustment1

  • Crude prices kept falling this week as recession fears plagued the market sentiment, outweighing concerns over supply tightness. US Federal Reserve chair Jerome Powell, in a testimony before the US Congress on June 22, said the Fed is strongly committed to reining in inflation, while noying that recession though, is “certainly a possibility". US President Joe Biden highlighted a recession was not inevitable, but did not entirely clear market doubts over tightened financial conditions and an economic downturn. Biden is widely expected to announce a proposal to suspend federal taxes on gasoline and diesel through September and urge individual states to waive their own gas taxes.
  • Asian gasoline increased by $3.84/b on week to $39.17/b due to summer driving season and limited supply. Indian Oil Corp., Hindustan Petroleum Corp. Ltd., Pakistan State Oil and Engen started to seek spot gasoline purchase tender with delivery date ranging from late June to July. Elsewhere in Asia, prompt demand from Malaysia was high amid a scheduled turnaround at Petronas' 300,000 b/d refinery in Melaka.
  • Asian gasoil/diesel rose by $4.7/b on week to $73.7/b on June 23 Asian close amid strengthening demand and limited supply. Gasoil tightness in Asia is exemplified by an unusual move made India's Bharat Petroleum Corp and Indian Oil Corporation when each issued a purchase tender for a total of five 30,000-40,000 mt cargoes of high-speed diesel for delivery over end-June to early July. It is noted that these state-owned oil majors usually issue sell tenders for gasoil, and the purchase were made due to the urgent need to replenish gasoil inventory as India’s domestic sales has reportedly increased following a recovery in its economy.
  • On the supply front, Asian refiners have been maximizing gasoil production to meeting constructive demand from the region and the West. Gasoil flows to West Africa from East of Suez refiners have soared to fill the gap caused by less flows from Russia. Moderating gasoil demand for heating in Europe is another reason behind the reduced arbitrage incentive.

FOREX: Philippine peso depreciated week-on-week against the US dollar by P1.04 to P54.41 from P53.36 in previous week.

DOMESTIC OIL PRICES

Effective 28 June 2022, the oil companies implemented a price increase in domestic oil products. Gasoline by P0.50 per liter, P1.65 per liter for diesel and kerosene by P0.10 per liter.

These resulted to the year-to-date adjustments to stand at a net increase of P30.00/liter for gasoline, P45.90/liter for diesel and P39.75/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
 

 

 

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