WORLD OIL PRICES (January 24-28,2022 trading days)

Dubai crude has increased week-on-week by around US$ 0.90/bbl. Both MOPS gasoline and MOPS diesel have also increased: gasoline by almost US$ 2.30 per barrel and diesel by nearly US$ 1.90 per barrel.

Reasons for the Price Adjustment¹

• Crude oil complex extended its run amid rising geopolitical tensions on the Russia-Ukraine border and supported by a solid demand outlook. In response to a Russia military buildup at the border, NATO continues to put additional forces on standby and send ships and fighter jets to NATO deployments in Eastern Europe, ratcheting up geopolitical tensions and supporting the crude price uptrend.

o Ukraine is a key oil and gas transit hub between Russia and Europe and any further escalation has the potential to send crude and gas prices still higher. This comes despite an increasingly hawkish stance by the Fed and unexpected build in US crude inventories.

• After softening over last week, the strength in the Asian gasoline market rebounded on improved regional mobility metrics and ongoing supply squeeze exacerbated by Vietnam’s Nghi Son refinery cutting runs to 80% due to financial difficulties in procuring crude feedstock for January delivery.

o Meanwhile, the mobility indicators in India, Indonesia and Malaysia were recorded at 69.48%, 15.37% and 8.55% above baseline levels as of Jan.25. Asian market also got an uplift from US gasoline market amid widening of US gasoline cracks, up by $2.2/b on week. Against this backdrop, the backwardation in front month swaps surged with Asian gasoline cracks ascending by about $2/b on week to $13.67/b on Jan. 27 Asian close.

• Low regional inventories, limited spot availability and looming concerns on slashed gasoil/diesel exports from China amid improving regional demand continue to fuel the Asian gasoil complex. Due to strong domestic demand and reduced quotas, China’s gasoil exports plunged by more than 45% on month to 325,000 mt in December.

o Amid supply crunch in Asian region and steady demand from Australia and Southeast Asia, swing barrels from India and Persian Gulf continued to be pulled to the region with buyers shelling out higher cash premiums for gasoil cargoes.

FOREX: Philippine peso appreciated week-on-week against the US dollar by P0.08 to P51.31 from P51.38 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 01 February 2022, the oil companies implemented a price increase in domestic oil products. Both gasoline and diesel have increased by P0.75 per liter while P0.45 per liter increase has been effected on kerosene.

These resulted to the year-to-date adjustments to stand at a total net increase of P5.70/liter for gasoline, P7.95/liter for diesel and P7.20/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.

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