Oil Monitor as of 02 May 2023

Date published: May 3, 2023

WORLD OIL PRICES (April 24-28, 2023 trading days)

The week-on-week price of Dubai crude has decreased by around $3.00/bbl. MOPS prices of gasoline, diesel and kerosene have also decreased per barrel by about $4.00, $3.30, and $3.00, respectively, during the reference week.

Reasons for the Price Adjustment1

The week’s adjustment in oil prices was largely driven by the following:

  • Oil prices fell amid concerns of another rate hike by the US Fed and prospects of weaker global demand growth. Asian refiners called for Saudi Aramco to lower crude Official Selling Price (OSP) for June-loading barrels.

  • A weekly draw in US crude inventories gave oil futures a momentary boost, but prices soon turned lower on broader economic concerns.

  • Asian gasoline crack recovered but downward pressure remained as China is expected to issue additional product export quotas. Indonesia was said to have deferred some term gasoline cargoes.
  • Expectations of an increase in Chinese exports on the back of an anticipated release of the second batch of export quota by end-April continued to weigh on market sentiment. China exported around 764,000 mt of gasoline in March, about 70% of which was destined for Singapore.
  • Asian gasoil/diesel crack extended losses amid a narrowing East-West EFS, weighted down by speculations around China’s export quotas and concerns over overall demand growth amid macroeconomic uncertainties.
  • Market speculations around a second batch of clean oil product export quotas from China and concerns over overall demand growth amid macroeconomic uncertainties continued to weigh on market sentiment.

FOREX: The week-on-week average of Philippine peso appreciated versus the US dollar by P0.34 to P55.67 from P56.01 in previous week.

 

DOMESTIC OIL PRICES

Effective 02 May 2023, the oil companies implemented a per liter decrease of P1.50 for
gasoline, P1.30 for diesel and P1.40 for Kerosene.

These resulted to a year-to-date net decrease for diesel at P4.35/liter and kerosene at
P4.95/liter. Gasoline on the other hand, has a net increase of P6.05/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 28 April 2023 by S&P Global Platts Analytics

 

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