WORLD OIL PRICES (January 10-14, 2022 trading days)

Dubai crude has increased week-on-week by around US$3.40/bbl. Both MOPS gasoline and MOPS diesel have also increased: gasoline by almost US$ 3.00 per barrel and diesel by about US$ 4.80 per barrel.

Reasons for the Price Adjustment¹

• Crude prices carried their strong bullish momentum from last week and rallied past the $84/bbl mark on prospects of a tighter supply outlook and buoyant demand projections despite omicron concerns amid lower oil inventories. The widening gap between OPEC+ production and quota is increasingly becoming a matter of concern for the oil market and raising questions on the producer group’s ability to meet committed supply increases. 14 out of 18 members fell short of meeting their production targets including Russia, the largest producer.
• Asian gasoline market remained stable as thin supply prospects from China on slashed product export quota balanced the weakness in mobility metrics of some key consuming nations. The mobility metrics worsened in most of the Asian nations except Malaysia and Indonesia. COVID-19 restrictions such as closure of malls, restaurants, gyms, schools, and weekend curfew in some of the major metropolitan cities in India weighed heavily on mobility metrics that slid from 243% of pre-COVID levels to around 180% on week as of Jan. 9.
• Gasoil/diesel is faced with the prospects of lower exports from China amid low middle distillate inventories in Singapore that hit 8-year low on January 12 amid resurging demand in the region. Asia continues to live with the virus, boosting the Asian gasoil complex. China gasoil exports are expected to slump 38% in January from initial estimate of 210,000 mt in December with only Sinopec expected to send gasoil barrels to Asia.

FOREX: Philippine peso depreciated week-on-week against the US dollar by P0.02 to P51.16 from P50.14 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 18 January 2022, the oil companies implemented a price increase in domestic oil products. Gasoline has increased by P0.90-0.95 per liter, P1.75-1.80 per liter for diesel and kerosene by P2.30 per liter.

These resulted to the year-to-date adjustments to stand at a total net increase of P3.50/liter for gasoline, P5.30/liter for diesel and P5.05/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