WORLD OIL PRICES (December 6-10, 2021 trading days)
Dubai crude has increased week-on-week by about US$1.25/bbl. Both MOPS gasoline and MOPS diesel have also increased by around US$ 4.35 per barrel and US$ 3.60 per barrel, respectively.
Reasons for the Price Adjustment1
- Crude oil prices rebounded and extended gains as omicron fears faded following news of the new variant being less severe than previously thought and existing set of vaccines providing adequate protection against the mutant strain.
- With no progress being made in the seventh round of US-Iran talks in Vienna on Dec. 3, optimism of Iranian barrels returning to the oil market faded and supported bullish crude market. S&P Global Platts Analytics expect a framework deal in Q1’22 with full sanction waiver in April 2022 however, no deal scenario possibility is high.
- Return of tighter restrictions and lockdowns in parts of Europe have opened the arbitrage for West crudes into Asia.
- Asian gasoline cracks to Dubai rose by more than 29% on week to $12.56/b on Dec.9 as omicron fears waned after several medical authorities reported new variant to be mild, with existing vaccines offering decent protection against the new strain. Driving activity as reflected by the Apple mobility data continues to improve in the key consuming nations. On Dec. 5, mobility index was recorded at 29.72% above baseline for Malaysia while in Australia and Vietnam it was reported at 21.15% and 0.29% above baseline levels, respectively.
- Asian gasoil/diesel market remained firmed on healthy regional demand as reflected in the regional cash differentials jumping by more than $0.15/b on week to $0.57/b. Firm regional demand continues to soak the swing barrels from India and Persian Gulf heading into Asia.
- With little impact seen from omicron variant, countries in the region continue to open amid low middle distillate inventories in Singapore further tightening regional supply and adding to the bullish market sentiment. Asian gasoil cracks rose by $1.60/b on week to $12.29/b on Dec. 9 Asian close.
FOREX: Philippine peso appreciated week-on-week against the US dollar by P0.08 to P50.32 from P50.39 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 14 December 2021, the oil companies implemented a price an increase in domestic oil products.
Gasoline has increased by P1.60 per liter as well as diesel by P1.35 per liter and kerosene by P1.20 per liter.
These resulted to the year-to-date adjustments to stand at a total net increase of P17.30/liter for gasoline, P14.40/liter for diesel and P11.69/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