WORLD OIL PRICES (September 27-October 01, 2021 trading days)
Dubai crude has increased week-on-week by around US$2.80/bbl. MOPS gasoline and MOPS diesel have also increased by almost US$3.10 per barrel and US$ 4.60 per barrel, respectively.
Reasons for the Price Adjustment1
- Crude oil prices rallied earlier this week with November Brent futures crossing the $80/b for the first time since October 2018. The surge was driven by persistent supply tightness, surging gas prices and improving demand.
- Around 294,414 b/d or 16.18% of Gulf of Mexico oil production and 24.27% of gas production remained offline as of Sept. 23, with full recovery not expected to resume until Q1 2022.
o The crunch in the gas market that is likely to keep the prospects of gas-to-oil switching wide open continues to add bullish momentum to the oil market while demand continues to improve as pandemic-related restrictions ease.
o The gains caused by tightness in the oil market were, however, capped later in the week by unexpected build in US crude inventories, rising by 4.6 million barrels and breaking the streak of eight-week draw.
- Asian gasoline prices rose on firming regional demand amid a counter seasonal rise in implied demand in the US.
o Improving mobility metrics in Indonesia, the largest gasoline importer in Asia, as indicated by the driving activity in the country has surpassed the baseline levels by 8.81% on Sept. 27.
o Refiners in India have recently increased the utilization rates to above 90% amid the continued uptick in gasoline demand.
- Asian gasoil/diesel complex continued the bullish momentum from last week on tight regional supplies from North Asia amid viable arbitrage economics to send barrels to the West.
o The supply tightness coincides with improving demand from the region, particularly from the mining sector in Australia on high coal prices and easing of restrictions
- Demand is also picking up in Asia as more countries open economy and as winter seasonal demand sets in. Ahead of winter stockpiling, no exports of 10ppm gasoil cargoes have been seen lately form South Korea while cargo outflow from the region to the West has been healthy.
FOREX: Philippine peso depreciated week-on-week against the US dollar by P0.67 to P50.92 from P50.25 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 05 October 2021, the oil companies implemented a price increase in domestic oil products, i.e. P1.45-P1.50 per liter for gasoline, P2.00-P2.10 per liter for diesel and P2.05-P2-10 per liter for kerosene.
These resulted to the year-to-date adjustments to stand at a total net increase of P16.55/liter for gasoline, P15.00/liter for diesel and P12.74/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
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1 Asia Pacific Weekly Recap by S & P Global