Oil Monitor as of 16 May 2023

Date published: May 17, 2023

WORLD OIL PRICES (May 8-12, 2023, trading days)

The week-on-week price of Dubai crude has increased by around $0.80/bbl. MOPS prices of gasoline, diesel and kerosene have also increased per barrel by about $0.10, $2.60, and $2.40, respectively, during the reference week.

Reasons for the Price Adjustment1

  • Oil prices rebounded as fears over the recent US banking crisis eased and after the US EIA forecast global liquid fuels consumption to increase in 2023. But the market remained concerned about the pace of China’s economic recovery.
  • Asian gasoline crack recovered but downward pressure remains as Chinese exports are expected rise in May with newly allocated export quotas and domestic demand cooling off after holidays.
  • Also on gasoline, discretionary driving in the US is expected to face headwinds and may dampen recovery in US gasoline demand as pump prices and inflation remain relatively high, and consumer confidence has deteriorated.
  • Asian gasoil crack rebounded but arbitrage economics2 to the West remained poor. India’s gasoil demand surged to a record high in April.

FOREX: The week-on-week average of Philippine peso depreciated versus the US dollar by P0.33 to P55.63 from P55.30 in previous week.
 

DOMESTIC OIL PRICES

Effective 16 May 2023, the oil companies implemented a per liter increase of P0.35 for gasoline, P1.40 for diesel and P1.20 for Kerosene.

These resulted to a year-to-date net decrease for diesel at P5.65/liter and kerosene at P6.30/liter. Gasoline, on the other hand, has a net increase of P4.20/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 12 May 2023 by S&P Global Platts Analytics

2 An investment strategy in which an investor simultaneously buys and sells an asset in different markets to take advantage of a price difference and generate a profit.

 

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