WORLD OIL PRICES (January 31-February 4,2022 trading days)
Dubai crude has increased week-on-week by almost US$ 2.00/bbl. Both MOPS gasoline and MOPS diesel have also increased: gasoline by around US$ 3.50 per barrel and diesel by about US$ 3.40 per barrel.
Reasons for the Price Adjustment1
- Crude prices came under slight pressure after Iranian oil minister announced that the country is ready to supply oil to global oil markets quickly, should US lift sanctions. Trading volumes also largely remained thin as Northeast Asian market players stayed away for Chinese Lunar New Year. However, arctic blast over Texas has reportedly shut-in some of the oil output in Permian basin again pushing oil prices past $90/b.
o Oil prices are likely to stay elevated this year as sustainable spare production capacity continues to shrink as OPEC+ taper back on cuts while demand reaches pre-pandemic levels.
- Asian gasoline continued its strong uptrend on improving regional demand as seen in rising driving mobility index. Asian mobility index excluding China rose to 109.7% versus Jan. 13,2020, up from 104.7%in the prior week, eclipsing previous week’s weakness. The largest increase in mobility metrics came from India, Indonesia, and Malaysia.
o Buying activity continues to improve in Asia’s largest importer of gasoline, Indonesia, ahead of Ramadan with country expected to import roughly 11 million barrels in February and March, up from around 10 million barrels in January.
- Supply crunch in Asian gasoil complex got further exacerbated by widening of arbitrage to send barrels to the West amid bullish demand West of Suez. On demand pull from the West, Singapore remained net exporter of gasoil for the week of Feb.2.
o Meanwhile in Asia, demand continues to improve further as economies tide over the omicron wave. This reflected in the rise in gasoil swaps volumes traded during Platts MOC that rose by 8.65% on month to 5.65 million barrels in January. Buyers continue to shell out higher premiums for gasoil cargoes amid limited supply with premiums rising by another $0.22/b on week to $1.60/b on Feb. 3.
FOREX: Philippine peso appreciated week-on-week against the US dollar by P0.23 to P51.08 from P51.31 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 08 February 2022, the oil companies implemented a price increase in domestic oil products. Gasoline has increased by P1.05 per liter, diesel by P1.20 per liter and P1.25 per liter increase for kerosene.
These resulted to the year-to-date adjustments to stand at a total net increase of P6.75/liter for gasoline, P9.15/liter for diesel and P8.45/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