Oil Monitor as of 23 March 2021

Date published: March 23, 2021

 

WORLD OIL PRICES (March 15-19, 2021 trading days)

Dubai crude has decreased week-on-week by almost US$1.20/bbl. Both MOPS gasoline and MOPS diesel have also decreased: gasoline by around US$0.25 per barrel and diesel by nearly US$1.50 per barrel.

Reasons for the Adjustment

  • The market regained stability as reports disclosed that Saudi Arabia was able to contain a fire from the March 19 drone attack by Iran-backed Houthi rebels on Saudi’s Riyadh refinery with crude distillation capacity of about 140,000 b/d, resulting to continued oil supplies, and no casualties happened.
    • The air attack is the second major assault this month on Saudi energy installations, which reportedly highlights a dangerous escalation of the six-year conflict between the Saudi-backed Yemeni government and the Iran-backed Houthis.

  • Despite the March 19 rally, Brent and WTI prices were still around 7% and 5% below their respective peaks earlier in March.

  • Demand outlooks remained under pressure amid concerns of resurgent coronavirus cases in the US and abroad, but the resumption of vaccine rollouts in several European countries stemmed the steep declines of March 18, which saw futures slide 7%.
  • A number of European countries had suspended its use over concerns that it might cause blood clots in the brain. Germany, France, Italy and Spain will resume Oxford-AstraZeneca coronavirus vaccinatins once the European Medicines Agency deemed the safety of the vaccine following a review.
  • The Asia gasoline market ended the week on a steady to slightly firmer note with the slight edging-up of the US Gasoline-Brent crack after an overnight sharp fall in crude futures.
    • While crude regained some of its losses late this week, new lockdowns in Europe and signs of rising cases in several US states continued to weigh on gasoline prices.
    • US inventories have been the key driver for Asian gasoline since last month’s disruptions to Gulf Coast refineries.
    • Platts Analytics remain positive for global gasoline balances ahead of the summer demand season.
  • The Asian gasoil (diesel) market remained under pressure with extended losses March 19. Recent weakness has been driven mainly by supply-side concerns, including higher volumes out of China as refineries were returning from spring maintenance. Summer gasoline demand will result in higher refinery runs, placing further pressure on gasoil.
    • Platts Analytics expect gasoil values to remain weak through the summer, with a recovery delayed until later into the year.
    • Exports to Europe seemed to offer little respite to the Asian gasoil market due to demand uncertainty expected from faltering rollout of mass vaccination.

 

FOREX: Philippine peso depreciated week-on-week against the US dollar by P0.09 to P48.61 from P48.53 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

The oil companies implemented the price decrease effective today, 23 March 2021. Diesel has decreased by P0.35-P0.44 per liter and kerosene by P0.45 per liter. No movement has been effected on the price of gasoline.

These resulted to the year-to-date adjustments to stand at a net increase of P5.90/liter for diesel and P4.90/liter for kerosene. Gasoline remains at a net increase of P7.35/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.

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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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