WORLD OIL PRICES (September 13-17, 2021 trading days)

Dubai crude has increased week-on-week by around US$2.15/bbl. MOPS gasoline and MOPS diesel have also increased by almost US$2.40 per barrel and US$ 2.30 per barrel, respectively.

Reasons for the Price Adjustment¹

• Crude oil prices rallied this week as the US Gulf Coast industry is still struggling to resume full production following Hurricane Ida. Nearly 28% or about 513,000 b/d of US production in the area remains offline as of Sept. 16. Some of the refineries in Louisiana resumed operations, thus raising demand for crude, and leading to inventory draws with US crude inventories falling by 6.42 million barrels according to market latest EIA report released on Sept. 15.
  
  • Outside of the US, disruptions to the Es Sider oil terminal in Libya - could see more than 1.2 million b/d of supply at risk. These supply concerns come amid a bullish demand outlook from OPEC. In its latest report published on Sept. 13, OPEC left its oil demand growth outlook unchanged for 2021 at 6.0 million b/d.
  • The growth outlook has raised by 0.9 million b/d to 4.2 million b/d for 2022 on stronger than expected recovery in oil demand and steady economic progress across all regions with ICE Brent front month futures rising by $4.22/b week-on-week to $75.67/b on September 16 Asian close.
     
• Improving regional demand sentiment, along with tight supply situation in the US, continue to buoy the Asian gasoline market with gasoline cracks rising by $0.66/b on week to $ 9.75/b on Sept.16 Asian close. Refining activity resumption has been slow following the aftermaths of Hurricane Ida with US gasoline inventories falling by 1.9 million barrels to 218.1 million barrels, 4% below the 5-year seasonal average, for the week ending Sept. 10.
  • In addition to the supply concerns in the US, driving activity continues to improve in key gasoline importing nations. Indonesia, the largest gasoline importer in Asia, is starting to raise its gasoline purchases for October on improving demand.
     
• Asian gasoil/diesel market continued the surge from last week due to tighter supply and improving demand in the region. Exports from China remain thin, and supplies from India and Arab Gulf have been heading to the West. China’s gasoil/diesel exports reportedly fall to 500,000- 650,000/mt for August and September, down from 1.39 million mt in July.
  • Indian gasoil demand is expected to reach pre-COVID level by year-end.
  • Australian gasoil demand is also expected to increase soon amid higher vaccination rates.
  • The high-sulphur grade gasoil that has remained lackluster over last few months is expected to pick-up as fishing ban in Southeast Asian countries are set to be lifted along with the easing COVID-19 restrictions and opening of economies.

   

FOREX: Philippine peso appreciated week-on-week against the US dollar by P0.07 to P49.92 from P49.99 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 21 September 2021, the oil companies implemented a price increase in domestic oil products, i.e. P0.80 per liter for gasoline as well as diesel and P0.85 per liter for kerosene.

These resulted to the year-to-date adjustments to stand at a total net increase of P14.55/liter for gasoline, P12.05/liter for diesel and P9.70/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