WORLD OIL PRICES (January 17-21, 2022 trading days)
Dubai crude has increased week-on-week by almost US$4.00/bbl. Both MOPS gasoline and MOPS diesel have also increased: gasoline by around US$ 3.70 per barrel and diesel by nearly US$ 4.55 per barrel.
Reasons for the Price Adjustment1
- Crude Crude oil complex continued its strong uptrend from last week as supply disruptions continue to grow while demand recovery stays robust as some countries are possibly close to “peak omicron variant” impacts.
o The latest incident to an increasing list of supply disruptions was a pipeline explosion (Iraq’s Kirkuk-Ceyhan crude export line) in Turkey affecting more than 400,000 b/d of oil supply from the market without any timeline for a resumption of pipeline service.
o The escalating tensions at the Russia-Ukraine border also provided strong uplift to an already tight oil market. Russia produced an average of 10.36 million b/d in 2020 and almost half were exported. About 42 percent of Russia’s oil export goes to Asia and Oceana, according to US Energy Information Administration (EIA) report;
o These disruptions come on top of ongoing supply woes in Libya and Kazakhstan and growing concerns on OPEC+ spare capacity to meet increasing demand, particularly in 2H 2022.
- Asian gasoline market slightly softened on week on weaker regional mobility metrics. For the week ending Jan. 17, non-China Asia weighted mobility index by Apple Mobility continued to ease, sliding from 126.11% to pre-COVID levels in previous week to 125.82%. Meanwhile in Asia, Singapore's light distillate stocks dipped by 0.86% on the week to 13.534 million barrels Jan. 13-19, Platts noted.
- Low gasoil/diesel exports from China, amid improving regional demand, add strength to an already tight Asian gasoil complex as countries continue to live with the virus. China’s gasoil exports is seen to drop by 38% in January from December estimate of 210,000 mt.
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FOREX: Philippine peso depreciated week-on-week against the US dollar by P0.22 to P51.38 from P50.16 in previous week.
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
DOMESTIC OIL PRICES
Effective 25 January 2022, the oil companies implemented a price increase in domestic oil products. Gasoline has increased by P1.45 per liter, P1.90 per liter for diesel and kerosene by P1.70 per liter.
These resulted to the year-to-date adjustments to stand at a total net increase of P4.95/liter for gasoline, P7.20/liter for diesel and P6.75/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.
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