Oil Monitor as of 14 June 2022

Date published: June 15, 2022

WORLD OIL PRICES (June 6-10, 2022 trading days)

The price of Dubai crude rose by about $4.30/bbl in the last week. MOPS gasoline and MOPS diesel prices likewise increased by roughly $2.80 per barrel and $10.00 per barrel, respectively.

Reasons for the Price Adjustment1

  • Crude prices resumed to surge this week after briefly dipping at the conclusion of previous week due to several bullish factors:

o The May jobs data in the United States surpassed forecasts, with roughly 330,000 new hiring, implying higher energy use.

o The Atlantic hurricane season officially started this week as the first Atlantic tropical storm of the year began in the southern Gulf of Mexico. The National Hurricane Center foresee possible constraint in production.

o The prices were also supported by recovering demand in China on eased lockdowns, as well as supply concerns over EU’s ban on Russian oil.

  • The gasoline markets are sustained by strong regional demand, especially hat from Malaysia due to a scheduled turn around at Petronas' Melaka refinery and strong gasoline demand from Indonesia and Pakistan. Enterprise Singapore data released late June 9 showed that Singapore's light distillate stocks fell 0.91 percent week on week to 15.12 million barrels as high domestic gasoline demand in South Korea reduced shipments to Singapore and high US demand pulled more Singapore gasoline blend stock cargoes westward.
     
  • According to EIA data released on June 8, US gasoline inventories fell 810,000 barrels to 218.18 million barrels in the week ending June 3, putting stockpiles nearly 10% below the five-year average for this time of year.
     
  • Asian gasoil balance remained tight despite moderated gasoil cracks2 on the back of more available supply from Asian refiners. Gasoil cracks have been incentivizing Asian refiners to increase gasoil exports with improved production yield. Both India and South Korea refiners have actively issued spot supply tenders with loading dates in June and July.

FOREX: Philippine peso depreciated week-on-week against the US dollar by P0.42 to P52.93 from P52.50 in previous week.

DOMESTIC OIL PRICES

Effective 14 June 2022, the oil companies implemented a price increase in domestic oil products. Gasoline by P2.15 per liter, P4.30 per liter for diesel and kerosene by P4.85 per liter.

These resulted to the year-to-date adjustments to stand at a net increase of P28.70/liter for gasoline, P41.15/liter for diesel and P37.95/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

 

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