WORLD OIL PRICES (October 24-28, 2022 trading days)

The week-on-week price of Dubai crude has increased by almost $2.30/bbl. On the opposite, MOPS gasoline has decreased by around $0.20 per barrel as well as MOPS diesel and kerosene by nearly $0.65 and $0.30 per barrel, respectively.

Reasons for the Price Adjustment¹

• Crude oil prices rebounded to three-week highs on Oct. 27 as demand outlook received a boost from forecast-beating US third-quarter GDP growth, after falling for the first two quarters. Yet economic headwinds remained as indicated by a fresh round of weak US economic indicators earlier this week.

o At its meeting on November 2, the Federal Reserve was expected to announce a fourth consecutive 75 basis point increase in interest rates, despite mounting speculation that it would moderate the pace of its tightening cycle.

• A draw in US crude inventories also gave a boost to oil prices. Total US crude oil inventories fell by 830,000 barrels to a 21-year low of 841.66 million barrels in the week to October 21, the US EIA data showed. Commercial crude stocks climbed 2.59 million barrels to 439.95 million barrels, but that was offset by a 3.42-million-barrel draw from the nation’s Strategic Petroleum Reserve to 401.72 million barrels.

• Asian gasoline crack vs. Dubai weakened as of October 27 Asian close, even as US-RBOB Brent crack climbed on week on the back of a 1.48-million-barrel draw in US gasoline stocks in the latest week. Expectation of China’s gasoline exports, which are set to rebound in Q4 amid sufficient quotas also helped soften the market . Customs data showed that China’s gasoline exports tumbled to a 13-month low of 662,000 mt in September, down from a five-month high of 1.12 million mt in August and down 28.1% on year.

• Asian gasoil crack fell as China’s gasoil exports hit a 15-month high of 1.73 million mt in September, up 122% on year and more than doubling the 829,000 mt exported in August. Reports say, Singapore replaced the Netherlands as China's top destination for gasoil in September, at 564,000 mt. China’s gasoil production surged to 17.15 million mt in September after refiners raised diesel yield at the expense of gasoline.

FOREX: The week-on-week average of Philippine peso appreciated versus the US dollar by P0.40 to P58.52 from P58.93 in previous week.

DOMESTIC OIL PRICES

Effective 01 November 2022, the oil companies implemented a per liter decrease in gasoline by P0.25, diesel by P0.60 and P0.25 for kerosene.

These rresulted to the year-to-date total adjustments to stand at a net increase of P15.85/liter for gasoline, P36.80/liter for diesel, and P28.95/liter for kerosene.

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
SMS: (0915) 4469421
Email: oilmonitor@doe.gov.ph
Website: https://www.doe.gov.ph

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¹ Asia Pacific Weekly Recap by S & P Global Platts Analytics