Oil Monitor as of 02 August 2023

Date published: August 4, 2023

WORLD OIL PRICES (July 24-28, 2023, trading days)

The week-on-week price of Dubai crude has increased by around $3.30/bbl. MOPS gasoline, diesel and kerosene have also increased by about $4.50/bbl, $8.00/bbl and $7.40/bbl, respectively

Reasons for the Price Adjustment1

  • Oil prices increased on hopes for increased Chinese demand following top leaders' commitments to intensify policy support for the economy in the face of a persistent slump.
  • In line with market expectations, the US Federal Reserve announced another interest rate hike of 25 basis points on July 26. While this move had already been priced in, an air of uncertainty still surrounds the outlook of monetary policies and their impact on the global oil complex later in 2023.
  • Some Chinese refineries are heard to have slightly cut their utilizations due to high temperature recently.
  • Asian gasoline crack rebounded, tracking gains in the US-RBOB Brent crack. China is expected to issue additional export quotas for clean oil products.
  • Some market participants expected China to issue 10 million mt of export quotas for clean oil products and another 5 million mt of export quotas for fuel oil in its third batch of allocations. The expectation seems to be priced in.
  • With the expected tightening supply of gasoil/diesel in August, South Korea's Hyundai Oilbank plans to shut the 360,000 b/d No. 2 CDU at its Daesan complex in August for a planned maintenance.
    • The partial turnaround, which includes shutting associated secondary units including a 52,000 b/d residue fluid catalytic cracker.
  • According to the most recent data from the government-run Korea National Oil Corp, South Korea's gasoil exports decreased by 28.83% month over month and 1.33% year over year in June, reaching a 28-month low of 13.70 million barrels.

 

FOREX: The week-on-week average of Philippine peso depreciated versus the US dollar by P0.14 to P54.64 from P54.50 in previous week.

 

 

DOMESTIC OIL PRICES

Effective 01 August 2023, the oil companies implemented an increase of P2.10/liter for gasoline,
P3.50/liter for diesel and kerosene by P3.20-P3.25/liter.

These price adjustments resulted in a year-to-date net decrease of P0.10/liter for kerosene. Gasoline
and diesel on the other hand, have a net increase of P11.00/liter and P3.10/liter, respectively.

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 29 July 2023 by S&P Global Commodity Insights

 

 

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