Oil Monitor as of 28 December 2021

Date published: December 28, 2021

WORLD OIL PRICES (December 20-24, 2021 trading days)

Dubai crude has decreased week-on-week by about US$1.00/bbl. Both MOPS gasoline and MOPS diesel have also decreased: gasoline by almost US$ 0.60 per barrel and diesel by nearly US$ 1.70 per barrel.

Reasons for the Price Adjustment1

  • Crude prices remained under pressure as renewed omicron concerns gripped the market. The fast-spreading variant prompted several countries to tighten measures and raised concerns of lockdowns. On Dec. 19, Netherlands announced the country would be entering lockdown till Jan. 14. Denmark and Ireland also imposed new restrictions while US urged people to take booster shots and wear masks in crowded public spaces amid concerns on vaccine ineffectiveness against the variant.
     
  • In Asia, Thailand halted its quarantine free traveler program effected in 2 months while Singapore put a freeze on new ticket sales under vaccinated travel lanes (VTL) from Dec. 23 to Jan. 20 on omicron concerns. However, crude prices got its support from demand in the US and UK as these countries have yet implemented additional lockdown measures before Christmas.
  • Asian gasoline strengthens on regional demand. However, the fast-spreading omicron variant continues to pose risk to the ongoing recovery as several countries have tightened border measures and issued advisory to limit non-essential travel which could dampen the driving activity and weigh on the gasoline demand in coming weeks.
     
  • Gasoil/diesel firm demand from the region particularly Australia and Vietnam continue to absorb the growing resupply barrels into Asia. With Exchange of Future Swaps (EFS) hovering close to minus $8/mt on ensuing lockdowns and tighter restrictions in the West, more swing barrels from India and Persian Gulf are heading into Asia. But resilient gasoil demand amid low inventories continues to absorb these barrels

FOREX: Philippine peso appreciated week-on-week against the US dollar by P0.22 to P50.01 from P50.23 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 28 December 2021, the oil companies implemented a price decrease in domestic oil products. Gasoline has decreased by P0.20-0.30 per liter, diesel by P0.65 per liter and P0.85 per liter for kerosene.

These resulted to the year-to-date adjustments to stand at a total net increase of P17.65/liter for gasoline, P14.30/liter for diesel and P11.54/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

 

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