WORLD OIL PRICES (March 7-11, 2022 trading days)

Dubai crude has increased week-on-week by about US$ 14.20/bbl. MOPS gasoline and MOPS diesel have both risen by about US$17.40 per barrel and US$ 30.19 per barrel, respectively.

Reasons for the Price Adjustment¹

• Crude oil prices rallied earlier this week as US announced a ban on imports of all Russian oil, Liquified Natural Gas (LNG) and coal on March 08. This was followed by UK announcing phasing out all Russian imports by end of this year and Japan banning export of oil refining equipment to Russia and Belarus. Further, many private companies and market participants are self-sanctioning and shunning away Russian oil. Oil markets reacted very strongly to this announcement and self-sanctioning sentiment, with Dated Brent prices touching a high of $137/b on March 08.

o However, crude prices retreated later in the week following a diplomatic intervention by UAE ambassador to US, wherein he stated UAE favors production increase and will qw2aencourage OPEC group for higher production output.

• Improving mobility metrics on back of easing restrictions in Asia and supply concerns on US sanctions of Russian oil, advanced Asian gasoline higher, with gasoline rising by $4.45/b on week to $18.37/b on March 10 Asian close. Asian gasoline market also took cue from US gasoline complex as US sanctioned Russian oil imports amidst the approaching summer driving season that further bolstered the market sentiment.
   
• On the Asian supply side, China’s National Development and Reform Commission (NDRC) has asked the oil companies to suspend gasoline and gasoil exports for April and serve the domestic market amid soaring international prices. The move could further tighten the gasoline market.
   
• Asian gasoil complex continued the strong momentum from last week as uncertainty grew over Russian gasoil barrels finding home in Europe, the largest diesel market of the world. Even though European Union (EU) has not directly sanctioned Russian energy flows so far but is under intense pressure following the announcement of sanctions by US and UK on Russian oil and gas imports.

o For the time being, self-sanctioning by several European entities has resulted in widespread rejection of Russian gasoil barrels and leading to increased pull of barrels in Europe from other supplying regions such as Middle East, India, and the US.

FOREX: Philippine peso depreciated week-on-week against the US dollar by P0.75 to P52.18 from P51.44 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 15 March 2022, the oil companies implemented a price increase in domestic oil products. Gasoline has increased by P7.10-P7.20 per liter, diesel by P12.00-P13.25 per liter, while kerosene by P10.50 per liter.

These resulted to the year-to-date adjustments to stand at a net increase of P20.35/liter for gasoline, P30.65/liter for diesel and P24.90/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