WORLD OIL PRICES (October 11-15, 2021 trading days)

Dubai crude has increased week-on-week by almost US$3.00/bbl. MOPS gasoline and MOPS diesel have also increased by nearly US$5.25 per barrel and around US$ 3.80 per barrel, respectively.

Reasons for the Price Adjustment

• Following US DOE’s announcement of not releasing additional crude stocks from its Strategic Reserve, the oil market again shifted its focus on tight supply and improving oil demand. The improving COVID-19 situation, easing of mobility restrictions and re-opening of borders by many countries fueled the prospects of higher oil demand.
   
• Gas to oil switching from utilities and industrial sectors amid a broader rally in the energy commodities space also continues to boost crude oil demand.
   
• Larger than expected build in US crude oil stocks of 6.09 million barrels to 426.98 million barrels for the week ending Oct.14 failed to weigh on market sentiment. Thus, crude oil prices continued the uptrend with US benchmark-WTI prices breached $80/bbl for the first time since 2014 and Europe’s ICE Brent front month futures rose to $84/b on Oct.14 Asian close.
   
• Asian gasoline fundamental continues to tighten on uptick in regional demand amid ongoing supply tightness. Declining coronavirus cases, higher vaccination rates and upcoming string of festivals continue to propel Indian gasoline demand while re-opening of borders and resumption of interstate travel in Thailand and Malaysia, respectively, added to bullish market sentiment.

o Lower gasoline exports from China that are likely to persist through Q4 continues to tighten the Asian gasoline market.

• ​​​​Supply squeeze amid robust arbitrage economics to send gasoil/diesel barrels to the West continue to support low sulphur gasoil market while medium sulphur grade sees steady recovery from Southeast Asia.

o Market estimates though see China’s October gasoil exports are likely to fall 47% month on month on reduced export quotas and strong domestic market.

FOREX: Philippine peso depreciated week-on-week against the US dollar by P0.01 to P50.70 from P50.69 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 19 October 2021, the oil companies implemented a price increase in domestic oil products, i.e. P1.80 per liter for gasoline, P1.40-P1.50 per liter for diesel and P1.30 per liter for kerosene.

These resulted to the year-to-date adjustments to stand at a total net increase of P19.65/liter for gasoline, P18.00/liter for diesel and P15.49/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