Oil Monitor as of 27 June 2023

Date published: June 27, 2023

WORLD OIL PRICES (June 19-23, 2023, trading days)

The week-on-week price of Dubai crude has increased by around $2.90/bbl. MOPS gasoline has also increased by about $0.70/bbl, so as diesel and kerosene that both increased by about $2.70/bbl and $3.00/bbl in the same comparative week.

 

Reasons for the Price Adjustment1

  • Crude oil futures slipped on renewed recessionary fears as European central banks continued to adopt tighter monetary policies. The Bank of England surprised the market with 50 basis points hikes, marking its 13th consecutive rate hike. Norwegian interest rates were raised to their highest level in 15 years at 3.75%, while Switzerland also raised rates for the fifth consecutive time since June of 2022 to 1.75%.
  • On geopolitics, the European Union on June 21 agreed on a new package of sanctions against Russia in a move aimed at stopping other countries and companies from avoiding existing measures.
  • In regional refinery news, the 7,400 b/d FCC gasoline desulphurization unit at Indian IOC's Panipat refinery is anticipated to be shut down for maintenance from July 1–30. Since June 15, the refinery's 13,000 b/d RFCC has been off-line for turnaround.
  • Asian gasoline crack eased, tracking a narrowing US RBOB-Brent crack on the back of a continued inventory build-up. Singapore95/92 RON spread soared to a 7-month high.
  • The US gasoline stocks rose for the 3rd consecutive week by 0.48 million barrels in the week ended June 16. The bulk of gains were seen on the US Atlantic Coast, where stocks have risen 6 million barrels since mid-May, according to US-EIA data.
  • China’s clean oil product exports rose 28.2% on month to 2.91 million mt (759,000 b/d) in May, the first month-on-month recovery since January, per the General Administration of Customs data.

o Gasoline was the main driver for China’s product out flow recovery in May. Volume increased by 65.9% on month to 1.36 million mt.as domestic gasoline sales dropped after the Labor Day national holiday activity in early May.

  • Asian gasoil crack rose as sentiment received support from a widening East-West arbitrage spread. The widening East-West arbitrage spread will likely divert surplus barrels from the Arab Gulf and India to the West in the near-term. Gasoil/diesel stocks in the Amsterdam-Rotterdam-Antwerp refining hub drew to the lowest since Jan. 5, as reduced flows from the East and unplanned refinery outages in Northwest Europe contributed to a tight diesel market.

 

FOREX: The week-on-week average of Philippine peso appreciated versus the US dollar by P0.28 to P55.69 from P55.97 in previous week.

 

DOMESTIC OIL PRICES

Effective 27 June 2023, the oil companies implemented a per liter increase of P0.20 for gasoline, P1.05 for diesel and P1.20 for kerosene.

These price adjustments resulted in a year-to-date net decrease for diesel at P3.00/liter and kerosene at P5.15/liter. Gasoline, on the other hand, has a net increase of P6.55/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

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 23 June 2023 by S&P Global Platts Analytics

 

 

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