WORLD OIL PRICES (August 26-30, 2013 trading days)

Oil prices started lower at the start of the trading week as the likelihood of an imminent US-led military action against the Syrian Government weakened.

However, losses were restrained by surprise positive Chinese economic activity data as its manufacturing figures in July improved. Thus, though lower than the last week’s levels, price uptrend generally continued into the week’s trading days. With uncertainty still widespread in the region, coupled with continuing possibility of a military clash in the Middle East, concerns still linger that international oil prices could surge.

Oil prices received some support from Chinese data in two (2) surveys, i.e. one that showed factory activities in the country expand at their fastest rate in more than a year in August, boosting hopes of demand growth recovery. The other survey revealed that China's factory activity increased to a four-month high last month as domestic demand recovered. Reportedly, the world's second-largest economy is trying to reverse a slowdown that pulled economic growth to a two-decade low of 7.5% in the latest quarter.

Prices were also supported by a fall in supplies from the producer group, the Organization of the Petroleum Exporting Countries (OPEC), whose supplies averaged 30.32 million bpd in August, down from a revised 30.50 million bpd in the previous month.

Moreover, Russian President Vladimir Putin’s assurance of continued support to Syria, and news that the U.S Federal Reserve will keep its economic stimulus measures in place longer than expected pushed prices even higher last Friday.

In the Asian market, Platts noted that the region’s gasoline may find support from overnight strength in US benchmark RBOB gasoline prices a day after regional cracks plunged to a 20- month low, pulled down by weakness in the West. Platts earlier noted that Asian cracks had stabilized in recent days.

For the Asian gasoil/diesel, stocks of middle distillates in Singapore hit their highest level in more than seven months this week, rebounding from 5-year low seen two weeks ago. Stocks were last higher in the week ended January 30, when inventories stood at 11.54 million barrels.

FOREX: Peso depreciated against the US dollar by P0.11 to 44.47, from P44.58 in the preceding week.

Other recommended reference sites:
(1) http://www.aip.com.au/pricing (2) http://www.med.govt.nz/ers/oil_pet/prices/prices.html

DOMESTIC OIL PRICES

Effective 10 September 2013, most of the oil companies implemented an increase of P0.30/liter for gasoline and a decrease of P0.30/liter for kerosene. No adjustment was effected on diesel.

Including the said adjustment, the year-to-date net increase in gasoline rose to P3.54/liter while that of diesel remains at P4.08/liter.

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: http://www.doe.gov.ph