Oil Monitor as of 29 August 2023

Date published: August 31, 2023

WORLD OIL PRICES (August 21-25, 2023, trading days)

The week-on-week price of Dubai crude has decreased by around $0.35/bbl. On the other hand, MOPS gasoline, diesel and kerosene have increased by about $0.40/bbl, $1.20/bbl, and $1.70/bbl, respectively.

Reasons for the Price Adjustment1

  • Oil prices eased despite of a larger-than-expected drop in US crude inventories, among increased Iranian oil exports and weak PMI data in major economies.
  • US commercial crude oil inventories fell for the second straight week, putting stocks at the lowest outright level since end-December. Per the US-EIA, US inventory decreased by 6.13 million barrels in the week ending Aug. 18.
  • Scheduled maintenance of China’s Dongxing refinery that will shut 100,000 b/d with about 25 refining units in 61 days from early October.
  • Asian gasoline crack strengthened as the US RBOB-Brent spread widened despite that US gasoline stockpiles counter-seasonal build.
  • Mexican demand for Asian gasoline cargoes was expected to remain firm with the country having bought an estimated eight Medium Range tanker cargoes of gasoline from Asia in July.
  • Asian gasoil/diesel crack strengthened as the East-West gasoil Exchange of Futures for Swap (EFS) widened. Moreover, China’s Sinopec reduce planned gasoil outflows in August due to the shortage of export quotas. China’s new export quota likely to be released by end of August.

FOREX: The week-on-week average of Philippine peso depreciated versus the US dollar by P0.16 to P56.53 from P56.69 in previous week.

DOMESTIC OIL PRICES

Effective 29 August 2023, the oil companies implemented an increase of P0.30/liter for gasoline, P0.70/liter for diesel and P0.80/liter for kerosene.

These price adjustments resulted in a year-to-date net increase of P14.80/liter for gasoline, P9.50/liter diesel and P6.64/liter for kerosene.

For the updated prevailing retail pump prices, please refer to this link:
    • https://www.doe.gov.ph/retail-pump-prices-metro-manila

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

For more information, call the

Department of Energy
Pricing: 840-2187
LPG: 840-2130
Fuels: 840-5669
Website: https://www.doe.gov.ph

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1 Asia-Pacific Weekly Recap 24 August 2023 by S&P Global Commodity Insights.

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