Oil Monitor as of 10 August 2021

Date published: August 10, 2021

 

WORLD OIL PRICES (August 2-6, 2021 trading days)

Dubai crude has decreased week-on-week by around US$1.80/bbl. MOPS gasoline and MOPS diesel have also decreased by almost US$1.90 per barrel and US$ 1.60 per barrel, respectively.

Reasons for the Price Adjustment

  • Oil prices fell about 1% lower on Friday, posting to their steepest weekly losses in months, on worries that travel restrictions to curb the spread of the Delta variant of COVID-19 will derail the global recovery in energy demand.
     
  • ​​​​Crude futures also came under pressure as the dollar strengthened after monthly U.S. job growth came in higher than expected. A stronger dollar makes greenback-denominated oil more expensive for buyers in other currencies.
     
  • Brent crude oil futures settled down 59 cents, or 0.8%,at $70.70, while U.S. West Texas Intermediate (WTI) crude futures fell 81, or 1.2%, to settle at $68.28 a barrel.
     
  • Crude prices ended two-week rally and shifted to downward trajectory during the week on expectations of fall maintenance in Europe, greater demand headwinds due to the Delta variant spreading in Asia and potential continuation of China’s stock drawing.
     
  • Asian gasoline market remained firm in the week as the Singapore RON 92 vs Dubai crack improved on the week to 56 cents/b on Aug.5, which closely traced directional moves in the US Gasoline-Brent crack a result of a sharply lower drawdown in US gasoline inventories.
     
  • On gasoil/diesel, while there are reports that demand recovery path remains uncertain amid rising infections, especially in Southeast Asia, some support was said to be coming from an open arbitrage to move barrels from India and the Persian Gulf out of the Asian region and toward the West.
    • ​There have been jitters as well over the state of China's domestic demand for gasoil due to severe floods and rising coronavirus infections reported over parts of the country. However, some sources said the ULSD market appeared to holding steady and trending at rangebound levels.​

FOREX: Philippine peso appreciated week-on-week against the US dollar by P0.34 to P49.99 from P50.33 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 10 August 2021, the oil companies implemented a price decrease in domestic oil products, i.e. P0.65-P0.80 per liter for gasoline, P0.70 per liter for diesel and P0.75 per liter for kerosene.

These resulted to the year-to-date adjustments to stand at a total net increase of P13.25/liter for gasoline, P10.40/liter for diesel and P8.70/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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