Oil Monitor as of 19 April 2022

Date published: April 19, 2022

WORLD OIL PRICES (April 11-15, 2022 trading days)

Dubai crude has decreased week-on-week by roughly US$0.25/bbl.  MOPS gasoline has also dropped by about US$0.35 per barrel. On the contrary MOPS diesel has increased by nearly US$ 2.80 per barrel. 

Reasons for the Price Adjustment1

  • Crude started tumbling in the middle of last week after IEA pledged additional 60 million barrels of crude release from storage other than that from US, taking the total release to 240 million barrels. Japan plans to release 15 million barrels of oil from both privately held and national oil petroleum reserves as part of this IEA pledge, which is the second largest after the US.
  • Crude prices started rising after OPEC warned against its inability to boost output for replacing Russian oil supply after US, EU and allies urged OPEC to increase output to combat soaring oil prices.
  • The bearish effect of Chinese lockdowns also reduced after China relaxed some lockdown measures in Shanghai, allowing low-risk areas more movement.
  • After rising last week, gasoline fell marginally this week, with cracks falling $0.32/b on week to$18.43/b on April 13 Asian close on the back of expectations that Chinese, Thai and Indian gasoline exports will rise, increasing overall supply. China is expected to export as much as 1 million mt of gasoline in April, with new COVID-19 restrictions in Guangzhou weighing on domestic demand.
  • The drop in gasoline cracks was marginal as they got some support from increased demand in India and many countries in Southeast Asia like Indonesia, Vietnam and Malaysia. The cracks were also supported taking cues from EIA data as US gasoline stocks fell 3.648 million barrels to 233.139 million barrels in the week ended April 8, with total finished motor gasoline supplied, an indicator of demand, rose 174,000 barrels over the same period to 8.736 million barrels.
  • The demand fundamentals in the region for gasoil/diesel remained robust amid economies opening up after subsidence of COVID-19 and increased industrial and agriculture demand. The gasoil complex was also further supported by record low inventories in key Asian trading hubs.

FOREX: Philippine peso depreciated week-on-week against the US dollar by P0.62 to P52.02 from P51.40 in previous week.  

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

 

DOMESTIC OIL PRICES

Effective 19 April 2022, the oil companies implemented a price increase in domestic oil products.  Gasoline has increased by P0.45 per liter, diesel by P1.70 per liter, and kerosene by P0.45 per liter. 

These resulted to the year-to-date adjustments to stand at a net increase of P15.45/liter for gasoline, P27.35/liter for diesel and P21.55/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.

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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