WORLD OIL PRICES (May 22-26, 2023, trading days)
The week-on-week price of Dubai crude has increased by around $1.25/bbl. MOPS gasoline also increased by about $2.80/bbl contrary to MOPs kerosene that decreased by nearly $1.00/bbl. MOPS diesel remained at similar level as the previous week.
Reasons for the Price Adjustment1
- Crude prices received a boost after comments by Saudi Arabia’s energy minister that raised the specter of further output cuts ahead of the OPEC+ meeting on June 3-4, and as US crude inventories saw a sharp week-on-week drawdown.
o On the other hand, Russia’s deputy prime minister Alexander Novak said on May 25 that OPEC+ is unlikely to take new steps at its June meeting.
Price increases, however, were tamed by reports on the US dollar index that strengthened to a two-month high on expectations that US interest rates will likely remain elevated for longer, pressuring dollar-denominated assets like oil futures.
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Asian gasoline crack strengthened, tracking a widening US RBOB-Brent spread, as US gasoline stocks tightened ahead of the peak summer driving season.
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Asian gasoil/diesel crack eased amid unviable East-West arbitrage economics. The gasoil sulfur spread continued to narrow as Vietnam opposed China’s fishing ban.
o Demand for 500ppm sulfur gasoil, used to power motorized fishing boats, could hold steady as major regional importer Vietnam has denounced China’s annual fishing ban, which reportedly runs from May 1 to Aug. 16.
FOREX: The week-on-week average of Philippine peso appreciated versus the US dollar by P0.19 to P55.80 from P55.99 in previous week.
DOMESTIC OIL PRICES
Effective 30 May 2023, the oil companies implemented a per liter increase of P1.10 for gasoline while the price of kerosene has dropped by P0.60 per liter. There was no movement effected on the price of diesel.
These price adjustments resulted to a year-to-date net decrease for kerosene at P6.75/liter, and net increase of P6.10/liter for gasoline. Diesel remains at a net decrease of P5.05/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 26 May 2023 by S&P Global Platts Analytics