WORLD OIL PRICES (February 1-5, 2021 trading days)

Dubai crude has increased week-on-week by almost US$2.30/bbl. Both MOPS gasoline and MOPS diesel have also increased by around US$2.50 and US$3.00 per barrel, respectively.

Reasons for the Adjustment

• Oil prices climbed on Friday to their highest levels in a year, boosted by the continued commitment of producers to hold back crude supply and positive signs of economic growth in the United States.
  • OPEC+ Joint Ministerial Monitoring Committee last February 3 meeting highlighted the success of production cuts in lowering global oil inventories and made no recommendations for any changes to the alliance's production cut accord.
  • Oil market fundamentals have tightened in recent weeks as OPEC+ production cuts have shored up supply outlooks and a second wave pandemic showed signs of receding in the US, UK, and China.

• Crude oil futures likewise settled higher amid tightened supply outlooks, demand optimism and a weaker US dollar. In Asia, crude oil futures were continuing to trade higher as coronavirus infection rates were seen easing in several countries, helped along by the rollout of vaccines, and fuelling positive demand sentiment.
  • The bullishness in the oil market comes amid signs the pandemic was starting to ease globally, spurring confidence among investors about the macroeconomic climate.
     
• On Gasoline, the recent rally for US RBOB cracks saw a pause as weekly stock numbers showed a sizable build of 4.5 million barrels; stocks remain 9 million barrels below year-ago levels.
  • Falling COVID-19 infections and an accelerating vaccination drive is expected to boost US demand leading into the summer, which will be supportive for the global gasoline complex.
     
• Market participants said gasoil inflows into Singapore, especially from India and the Persian Gulf, may trend lower in the coming weeks as these barrels were currently pointing toward the West due to low freight rates.
  • This could lead to tighter supply balances; should regional demand remain steady, further stock drawdowns could be expected.

FOREX: Philippine peso appreciated week-on-week against the US dollar by P0.02 to P48.06 from P48.08 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 their price increase effective today, 09 February 2021. Gasoline has increased by P0.85 per liter, diesel by P1.10 per liter and kerosene by P1.00 per liter.

These resulted to the year-to-date adjustments to stand at a net increase of P3.25/liter for gasoline, P2.65/liter for diesel and P2.25/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.

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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