Oil Monitor as of 16 November 2021

Date published: November 17, 2021

WORLD OIL PRICES (November 8-12, 2021 trading days)

Dubai crude has increased week-on-week by almost US$0.65/bbl. MOPS diesel has increased by nearly US$ 0.70 per barrel. On the contrary, MOPS gasoline has decreased by about US$ 2.60 per barrel.

Reasons for the Price Adjustment1

  • Crude prices rebounded on positive demand outlook with Saudi Aramco raising the Official Selling Prices (OSPs) of its crudes for Asia, Mediterranean, Europe and US even as supply remains slightly tight for now. Prices also got a boost from the US opening air travel on Nov. 8 and adding fresh optimism to the normalization of jet fuel demand. The bullish sentiment got another boost from a strong US job report for October.
     
  • Brent-Dubai Exchange of Future for Swaps (EFS) spread narrowed on stronger Dubai amid strong demand from Asia and tight supply from Middle East. Demand stays robust from key Asian buyers – China, India, and Japan while supply remains a concern to meet higher winter seasonal demand.
     
  • Asian gasoline market weakened further this week on increasing supply seen in the region and waning demand after the initial demand spike from Southeast Asia following easing of travel restrictions and re-opening of borders. Demand is expected to remain weak and pick up gradually as economy and travel opens more.
     
  • Leaner regional supply and robust demand continue to underpin the strong Asian gasoil/diesel market. With EFS widening further on week, the region needs to compete hard to pull barrels from Persian and Gulf into the region. Reduced exports from China further widens the regional deficit at a time when demand picking up across all the grades with reopening.

FOREX: Philippine peso appreciated week-on-week against the US dollar by P0.41 to P50.11 from P50.51 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 16 November 2021, the oil companies implemented a price decrease in domestic oil products. Gasoline has decreased by P0.90 per liter and kerosene by P0.10 per liter. No movement has been effected on the price of diesel.

These resulted to the year-to-date adjustments to stand at a total net increase of P20.05/liter for gasoline, P15.09/liter for kerosene while that of diesel remains at P17.50/liter.

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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