WORLD OIL PRICES (June 05-09, 2023, trading days)
The week-on-week price of Dubai crude has increased by around $1.70/bbl. MOPS gasoline has also increased by about $2.90/bbl, so as diesel and kerosene that both increased by about $3.20/bbl in the same comparative week.
Reasons for the Price Adjustment1
- Oil prices rebounded this week after the OPEC+ meeting last June 04 resulted in a supply cut that would bring Saudi Arabia’s output down to 9 million b/d for July. But price increase was capped by reports of eurozone entering a technical recession and weak data from China that brought concerns over demand.
➢ In the physical market, Saudi Aramco raised its July official selling prices (OSPs) for all its crude grades globally after pledging to cut its own production by 1 million b/d effective July 2023.
- Asian gasoline crack rebounded as sentiment was bolstered by a firm US market amid the peak summer driving season.
➢ The US RBOB-Brent spread widened on the back of tight supplies despite the weekly build in US gasoline stocks. The US-EIA data showed a 2.75-million-barrel increase in gasoline stocks to 218.82 million barrels in the week ended June 2, 2023.
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Asian gasoil/diesel crack rose but unviable East-West arbitrage and rising stockpiles continued to limit the upside potential.
➢ While spot availability from Northeast Asia were capped by ongoing refinery turnarounds, poor East-West arbitrage economics and rising stockpiles continued to limit the upside potential for the Asian gasoil market.
➢ Singapore’s onshore commercial stocks of middle distillates rose for a third straight week by 6.7% on week to an eight-week high of 8.49 million barrels over June 1-7.
FOREX: The week-on-week average of Philippine peso appreciated versus the US dollar by P0.02 to P56.11 from P56.13 in previous week.
DOMESTIC OIL PRICES
Effective 13 June 2023, the oil companies implemented a per liter increase of P1.20 for gasoline, P1.40 for diesel and P1.30 for kerosene.
These price adjustments resulted in a year-to-date net decrease for diesel at P3.95/liter and kerosene at P6.05/liter. Gasoline, on the other hand, has a net increase of P6.70/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 09 June 2023 by S&P Global Platts Analytics