WORLD OIL PRICES (September 14-18, 2015 trading days)

Crude oil prices reportedly found support from worries over negative economic data out of China and market expectancy of U.S. interest rate hike from the U.S. Fed. These supported the price declines in the first two trading days of the week, adding to the persistent rumors of oil supply glut led by Saudi Arabia, Iran and Iraq, all to cut their official prices to Asia for October deliveries.

By midweek, prices momentarily spiked by about US$2, following US-EIA’s report of weekly decline in crude supplies, and the decision of the Federal Reserve to leave interest rates unchanged. However, market traders shrugged off Fed's decision focusing instead on other macro factors and concerns about the global growth and energy demand, causing prices to revert later in the week.

A weaker dollar provided some support to crude oil prices after a weak Japanese data revived fears over the prospects for global growth. Japan exports reportedly slowed a second straight month in August, a sign that China's economic slowdown could be damaging the world's third-biggest economy. The Japanese figures followed worrying data from other Asian economies, including South Korea and Taiwan, creating anxiety over possible effects of slower growth in China.

On Asian products market, Platts noted of slightly upbeat supply/demand fundamentals for gasoline, contrary to the bearish US gasoline market ahead of the colder winter month. It said October is quite supported due to the many refinery turnaround and Haji demand [from Indonesia].

The Asian gasoil/diesel market fundamentals were largely steady over the week. Platts market sources said there was no shortage of cargoes in the region, and that demand was steady. A Japan- based trader stressed that some refineries in Japan are expected to enter into scheduled maintenance sometime in October, but this would not affect the market, noting further that "Prices are low and demand for gasoil in the region is low”.

Overall, Dubai crude decreased week-on-week by nearly US$2/bbl. MOPS gasoline and diesel dropped as well by more than a dollar a barrel.

FOREX: Week-on-week Peso/US$ rate appreciated by P0.21 to P46.68, from P46.89 in previous week.

Other recommended reference site: http://www.aip.com.au/pricing

DOMESTIC OIL PRICES

Effective 22 September 2015, most of the oil companies implemented price rollbacks of P0.50/liter for diesel, P0.35/liter for gasoline and P0.40/liter for kerosene.

These brought the year’s total adjustment to net increase of P1.11/liter for gasoline and net decrease of P3.14/liter for diesel. LPG remained with net decrease of P10.60/kg.

* RON 95

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