WORLD OIL PRICES (June 13-17, 2022 trading days)

The week-on-week price of Dubai crude decreased by about $0.70/bbl. MOPS gasoline has also fallen by around $0.20 per barrel, but MOPS diesel has escalated by $4.80 per barrel.

Reasons for the Price Adjustment¹

• After rising through mid-last week, crude prices began to fall after the release of the US inflation data which stood at a forty year high of 8.6% in May. The US dollar also gained strength as market was expecting an extremely aggressive stance from US Federal Reserve. Reportedly, the US Fed remains to control inflation, as its top priority, which would mean raising interest rates. Moreover, the fall in crude price was exacerbated by downward pressure from China’s demand with more massive COVID testing conducted in Beijing and Shanghai after reopening from COVID lockdowns.
   
• As the week ended, the prices had brief support from OPEC that officially acknowledged that Russian oil output is expected to fall in 2022 following US sanctions. Tight supply is also evidenced by the news that Libyan oil supply came to a halt, as the country's political crisis has led to more shutdowns of ports and fields.

• Meanwhile, gasoline fundamentals remained strong despite some transitory bearishness, with Atlantic Coast gasoline stocks falling by 631,000 barrels to 52.54 million barrels while demand remained strong.

o Asian gasoline strengthened on robust regional demand fundamentals. India's gasoline consumption surged 51.52% year on year in May, the highest in records dating back to 1998 and up 7.84% from April amid tax cuts on domestic fuel sales in the month.

• Asian gasoil/diesel also rose as growing production by Asian refiners does not entirely meet the constructive demand due to eased COVID restrictions in the region. The soaring gasoil crack² has incentivized net gasoil exporters in East of Suez to ramp up outflows with maximized gasoil production yield. Kuwait, Taiwan, India, and South Korea became more active in spot market recently with more tender offers.

o Meanwhile, gasoil net importers in Asia such as Hong Kong, Philippines and Indonesia were reported to increase gasoil imports in April and May to meet surging domestic demand. Looking forward, Commodity Insights Analytics anticipate gasoil demand in Asia will increase by 5.2% or 500,000 b/d on year to average 10.2 million b/d in H2 with majority growth contributed by Indonesia, China, India, Japan, Thailand, Philippines, and Vietnam.

FOREX: Philippine peso depreciated week-on-week against the US dollar by P0.44 to P53.36 from P52.93 in previous week.

DOMESTIC OIL PRICES

Effective 21 June 2022, the oil companies implemented a price increase in domestic oil products. Gasoline by P0.80 per liter, P3.10 per liter for diesel and kerosene by P1.70 per liter.

These resulted to the year-to-date adjustments to stand at a net increase of P29.50/liter for gasoline, P44.25/liter for diesel and P39.65/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 Cracks reflect the value of the refined product in relation to the price of crude and dictate refinery output