Oil Monitor as of 04 July 2023

Date published: July 5, 2023

WORLD OIL PRICES (June 26-30, 2023, trading days)

The week-on-week price of Dubai crude has decreased by around $1.30/bbl. MOPS gasoline has also decreased by about $2.05/bbl, as well as diesel and kerosene that both decreased by about $1.80/bbl and $1.90/bbl in the same comparative week.

Reasons for the Price Adjustment1

  • Oil prices fell this week as market participants shrugged off a failed Wagner rebellion in Russia and refocused on broader economic headwinds. S & P Commodity Insights noted the expansionary services, which was certainly better than the contractionary manufacturing sector.
  • US EIA data showed a higher-than-expected 9.60-million-barrel draw in US inventories for the week ended June 23.
  • Moreover, while lingering concerns remained over macroeconomics and ample WTI Midland supply weighing down the Northwest Europe market, Saudi Arabia’s additional voluntary production cut of 1 million b/d in July has relatively supported the Middle East market.

  • The market focus is also on the upcoming OPEC seminar in Vienna on July 5-6, which is an industry forum hosting oil company CEOs, policymakers, and other officials.

    Asian gasoline crack eased while US RBOB-Brent spread widened on the back of inventory drawdowns amid the peak US summer driving season. In Asia, China’s gasoline exports are expected to marginally decline in July due to higher domestic demand.

  • Asian gasoil/diesel crack strengthened while China’s gasoil exports are expected to rise in July on improving export margins and moderate domestic demand.
  • Gasoil/diesel stocks in the Amsterdam-Rotterdam-Antwerp (ARA) refining hub drew for a fourth straight week in end-June, as the tight diesel market awaits incoming supply from the East and the US, and for European refineries to come back online.

FOREX: The week-on-week average of Philippine peso appreciated versus the US dollar by P0.19 to P55.49 from P55.69 in previous week.

DOMESTIC OIL PRICES

Effective 04 July 2023, the oil companies implemented a decrease of P0.70/liter for both gasoline and diesel. Kerosene is also decreased by P0.85/liter.

These price adjustments resulted in a year-to-date net decrease of P3.70/liter for diesel and P6.00/liter for kerosene. Gasoline, on the other hand, has a net increase of P5.85/liter.

For the updated prevailing retail pump price, please browse 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

_______
1 Asia-Pacific Weekly Recap 30 June 2023 by S&P Global Commodity Insights

 

 

Pages