WORLD OIL PRICES (August 10-14, 2015 trading days)

Crude oil prices remained lower this week despite the marginal increases seen in some trading days during the week. An upbeat demand forecast from the International Energy Agency (IEA) caused the temporary price up-tick. The IEA saw global oil demand rising by 1.6 million barrels per day in 2015, up 260,000 bpd from its forecast last month, citing solid economic growth and consumers responding to lower prices. The persistent macroeconomic strength was said to support above-trend growth at 1.4 million bpd in 2016, up 410,000 bpd from its previous forecast. IEA added though, that global oversupply will last through 2016.

Oil prices fell back midweek on lingering worries over the crude supply glut and stronger US demand. The U.S. Energy Information Administration said crude-oil inventories fell by around 1.7 million barrels to 453.6 million barrels in the week ending 07 August 2015. The inventory slide was lesser than analysts’ forecast of 1.9 million barrels. Crude-oil inventories remain at levels not seen for this time of the year for at least eight decades, the EIA noted.

In Asia, Platts noted a largely stable sentiment in gasoline market as of Friday with little incremental regional demand seen. Latest data from International Enterprises Singapore showed the country exported 36,369 mt of gasoline to Mexico in the week ended 12 August 2015, a move not seen since July 2009, and 15,404 mt of arbitrage exports to South Africa.

Meanwhile, the Asian gasoil/diesel market continued to firm Friday, supported by an outflow of high sulfur gasoil barrels from the Middle East into the Red Sea and West Africa, Platts said. In addition, scheduled refinery turnarounds in Singapore and Malaysia over August-September have led to fewer exports and greater buying interest to cover shortfalls.

Overall, Dubai crude decreased week-on-week by almost US$0.50/bbl. MOPS gasoline also decreased by about US$1.40/bbl while diesel increased by US$0.70/bbl.

FOREX: Week-on-week Peso/US$ rate depreciated by P0.29 to P46.03, from P45.74.

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

DOMESTIC OIL PRICES

Effective 18 August 2015, most of the oil companies implemented a P0.25/liter decrease for gasoline and P0.35/liter increase for diesel. Kerosene was also increased by P0.20/liter.

Year-to-date total adjustments are at net increase of P1.46/liter for gasoline and net decrease of P3.49/liter for diesel. LPG remained with net decrease of P8.25/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