WORLD OIL PRICES (May 29-June 02, 2023, trading days)
The week-on-week price of Dubai crude has decreased by around $1.70/bbl. MOPS gasoline, diesel and kerosene have also decreased by about $2.50/bbl, $1.50/bbl and $2.00/bbl, respectively, in the comparative week.
Reasons for the Price Adjustment1
- Oil prices slumped this week, weighed down by supply risks and weak China economic data.
o On the supply side, while Saudi Arabia has warned of further cuts, the outcome for the upcoming OPEC+ June 4 meeting remains uncertain after the Russian Deputy Prime Minister and OPEC+ negotiator, Alexander Novak, said he would not expect new production cuts from the meeting.
o On the demand side, China’s data released May 31 showed the country’s factory activity contracted faster than expected in May, due to a sluggish recovery in industrial sectors after years of pandemic lockdowns. Moreover, China’s crude throughput is expected to decline to a four-month low in May amid heavy maintenance at state-owned refineries, which are expected to be offline in May and June.
o Japan sees a heavy refinery maintenance season.
o In other news, Pakistan is scheduled to receive around 750,000 barrels of Urals crude in the coming days, which would mark its first commercial-scale purchase of Russian crude oil. State-run Pakistan Refinery will process the Urals crude on a test basis after blending it with several Saudi Arabian and Abu Dhabi crude grades.
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Asian gasoline crack eased, tracking a softening RBOB-Brent spread as imports have picked up into the US Atlantic Coast. Octane values strengthened and may see a further uptick.
o Demand for higher octane gasoline and its components from the US and Mexico was seen following several refinery fires in both countries in recent weeks.
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Asian gasoil crack rebounded but unviable East-West arbitrage continued to limit the upside. India’s April gasoil exports dropped amid robust domestic demand.
FOREX: The week-on-week average of Philippine peso depreciated versus the US dollar by P0.34 to P56.13 from P55.80 in previous week.
DOMESTIC OIL PRICES
Effective 06 June 2023, the oil companies implemented a per liter decrease of P0.60 for gasoline and kerosene, while diesel has decreased by P0.30 per liter.
These price adjustments resulted in a year-to-date net decrease for diesel at P5.35/liter and kerosene at P7.35/liter. Gasoline, on the other hand, has a net increase of P5.50/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 01 June 2023 by S&P Global Platts Analytics