Oil Monitor as of 24 May 2022

Date published: May 25, 2022

WORLD OIL PRICES (May 16-20,2022 trading days)

The price of Dubai crude has risen by roughly $3.80/bbl week on week. MOPS gasoline prices rose as well by approximately $11.00 per barrel, while MOPS diesel prices declined by around $6.40 per barrel.

Reasons for the Price Adjustment1

  • Crude prices rose this week as OPEC ministers opposed No Oil Producing and Exporting Cartels (NOPEC) bill and EIA slashed US crude output forecast but slid amid bearish Chinese data, EU shying away from embargo on Russian oil and reports on Chinese buying Russian crude for SPRs.

o A U.S. Senate committee is expected to pass a bill that could open members of the OPEC and its partners to antitrust lawsuits for orchestrating supply cuts that raise global crude prices.

o Reports say that the NOPEC bill is intended to protect U.S. consumers and businesses from engineered spikes in the cost of gasoline and heating oil.

  • Oil prices also fell as Federal Reserve Chairman Jerome Powell warned that attempts to lower inflation could harm the economy. Powell warned that lowering inflation might cause some economic damage. However, he stated that the US central bank will "keep pushing" to tighten monetary policy until inflation is clearly dropping.
     
  • The Asian gasoline market continues to strengthen amid supply tightness in Asia following the refinery disruption in Indonesia, Asia’s largest gasoline buyer, and limited Chinese exports amid limited export quotas.
     
  • The Asian gasoline complex was also supported by a robust driving demand from the US as summer approaches, with the US gasoline stocks falling 4.8 million barrels to a more than four-month low of 220.189 million barrels in the week ended May 13 as per EIA data.

o The counter-seasonal stock decline of gasoline can be attributed to lower-than-expected production of gasoline by the refiners as they had shifted their yields towards distillates which had higher cracks.

  • The Asian gasoil complex eased amid prospects of increasing supplies in the region after several refinery start-ups although was still tight as the regional inventories continued to trend lower. Saudi Arabia's newly built full conversion Jazan Refinery Complex has started production and exports of ultra-low sulfur diesel are expected to increase from the refinery in June.

FOREX: Philippine peso depreciated week-on-week against the US dollar by P0.02 to P52.40 from P52.37 in previous week.

DOMESTIC OIL PRICES

Effective 24 May 2022, the oil companies implemented a price increase in gasoline by P3.95 per liter contrary to diesel and kerosene that dropped by P2.30 and P2.45 per liter, respectively.

These resulted to the year-to-date adjustments to stand at a net increase of P25.55/liter for gasoline, P29.10/liter for diesel and P25.20/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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