Source: DOE Website
WORLD OIL PRICES (August 29-September 02, 2022 trading days)
MOPS gasoline has also decreased by about $9.00 per barrel as well as MOPS diesel and kerosene by nearly $5.50 and $5.30 per barrel, respectively. There was no movement on the week-on- week price of Dubai crude.
Reasons for the Price Adjustment1
- Crude prices reflect the weaker global demand outlook after China escalated COVID-19 curbs and US Federal Reserve officials signaled further interest rate hikes amid global recession fears. All eyes were also on the OPEC+ producers’ meeting held on Sept. 5, with potential output cuts. Ministers from Venezuela, Azerbaijan and Congo have expressed support for Saudi Arabian energy minister Prince Abdul-Aziz bin Salman, who expressed flexibility and commitment of OPEC+ to cut crude output levels if needed.
o Demand concerns grew after the Chinese authorities imposed stricter mobility controls in several major cities to contain an outbreak of coronavirus. Most recently, the southwestern metropolis of Chengdu announced a lockdown of 21.2 million residents from Sept. 1 as it rolled out citywide mass testing in the country’s biggest shutdown since Shanghai’s 25 million residents were confined to their homes for two months earlier this year.
o In the US, Federal Reserve Chair Jerome Powell said Aug. 26 the Fed’s tightening monetary policy stance will likely remain in place “for some time”, while Atlanta Fed President Raphael Bostic said Aug. 30 that the Fed is committed to the “fight ahead” to bring down inflation, stoking concerns of another 0.75 percentage point interest rate hike again in September. Hawkish rate hikes are typically viewed as bearish for crude demand as they are aimed at cooling off economic growth.
- Asian gasoline cracks turned negative on Thursday for the first time since August 3, 2020 as market sentiment weakened sharply following the end of peak driving season. Major regional importers including Indonesia were also noted to have slowed down from buying activities amid ample supplies.
- Asian gasoil/diesel crack slid on the back of healthy supply in the region as refiners continued maximizing gasoil productions on still-attractive margins.
- Fresh COVID-19 mobility restrictions in major Chinese cities are now threatening to derail the country’s fuel demand recovery during the typical peak consumption season in September and October. Gasoil demand in India and Pakistan was likewise hit by heavy monsoon rainfalls that have disrupted construction and logistics activities.
FOREX: Philippine peso depreciated week-on-week against the US dollar by P0.30 to P56.39 from P56.09 in previous week.
DOMESTIC OIL PRICES
Effective 06 September 2022, the oil companies implemented a per liter decrease in gasoline by P2.60, diesel by P1.55 and P1.60 for kerosene.
These resulted to the year-to-date total adjustments to stand at a net increase of P16.95/liter for gasoline, P36.25/liter for diesel and P31.60/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