Oil Monitor as of 02 November 2021

Date published: November 3, 2021

WORLD OIL PRICES (October 25-29, 2021 trading days)

Dubai crude has increased week-on-week by around US$0.20/bbl. MOPS gasoline has also increased by nearly US$3.10 per barrel. On the opposite, MOPS diesel has decreased by US$ 1.15 per barrel.

Reasons for the Price Adjustment1

  • Crude prices extended their gains earlier this week on tighter supply demand fundamentals. Signs of tightness persisted in the physical market with spot premiums of cash over futures rising substantially during the week. However, flare-ups of coronavirus in Russia and China, along with a resumption in EU-Iran nuclear talks that could potentially add 1.3 million b/d of oil and alleviate some the supply tightness dampened some of the bullish momentum in the oil market.
     
  • Strong demand from India, Indonesia and Malaysia continues to propel Asian gasoline market higher amid limited regional supply. After the resumption of inter-state travel, Malaysia’s gasoline demand is expected to be nearing pre-COVID levels with country mopping up cargoes to build stocks in anticipation of higher demand.
     
  • Indonesia’s gasoline demand for November is also expected to be higher than 11 million barrels for October. Meanwhile, demand in India has been surging with the country even importing three spot cargoes. Indian demand is expected to stay robust during November-December festival and holiday season. On the supply side, reduced flows from China and fire at one of the crude distillation unit (CDU) and residue hydrodesulfurization (RDS) unit at Mina Al-Ahmadi refinery added to the bullish market sentiment.​
     
  • Though gasoil/diesel have fallen from its 21-month high last week, fundamentals remain well supported on improving regional demand as economies re-open amid leaner supply in the region.
     
  • Reduced gasoil exports from China with refiners prioritizing supplies to domestic market over export by increasing gasoil yields have further added to the supply squeeze.

FOREX: Philippine peso appreciated week-on-week against the US dollar by P0.08 to P50.72 from P50.80 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 02 November 2021, the oil companies implemented a price adjustment in domestic oil products. Gasoline has increased by P1.10-P1.15 per liter. On the positive side of this report, diesel and kerosene have decreased by P0.35-P0.40 per liter and P0.40 per liter, respectively.

These resulted to the year-to-date adjustments to stand at a total net increase of P21.95/liter for gasoline, P18.10/liter for diesel and P15.74/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

_______
1 Asia Pacific Weekly Recap by S & P Global

 

Pages