WORLD OIL PRICES (July 27-31, 2015 trading days)

World crude prices generally lowered over the trading week on combined predominant reports on Chinese stock market rout and crude supply glut. While there were upticks on the back of unexpected fall in US crude inventories and talks about reduced Saudi crude output after summer, said reports were specifically overshadowed by the following:

• Turmoil in China stock markets. A steep drop sparked concern about the economic health of the world's 2nd biggest energy consumer. Chinese stocks tumbled more than 8 percent, the biggest one-day drop in eight years, driving European equities markets to a two-week low.

• US dollar strength. Oil prices find continued support from the rise of the U.S. dollar. A stronger greenback makes commodities that are priced in dollars more expensive for overseas buyers, consequently denting demand.

• U.S. drilling activity. US data showed additional 21 rigs last week, suggesting a ramp up in output as crude futures recovered from six-year lows seen in the first quarter.

In Asia, Platts reported of a relatively stable gasoline market, though partakers were cautious about weak fundamentals. While fresh demand from Indonesia and India gave some support during the week, trading activity were said to remain limited. The market was also supported by firmer freight rates across Asia and Middle East. Thus, any rise in stocks was limited by buyer’s reluctance to seek cargoes at higher rates given expected weakness in the third quarter.

Similarly, Asian gasoil/diesel continued to be depressed as the surplus medium sulphur gasoil barrels remained locked within Asia and limited demand in the region, Platts said. The oversupply was expected to continue as demand for gasoil typically dips in the third quarter.

Overall, MOPS Dubai and gasoline dropped by more than US$2/bbl, along with that of diesel that fell by more than US$3/bbl.

FOREX:   Peso/US$ rate depreciated further by P0.24 to P45.56, from P45.32 in previous week.  

Other recommended reference site:  (1) http://www.aip.com.au/pricing  

DOMESTIC OIL PRICES

Effective today, 4 August 2015, most of the oil companies implemented a price rollback, the 7th in a raw, by P0.40-P0.45 per liter for gasoline, P0.90/liter for diesel and P0.70/liter for kerosene.

The price of LPG decreased as well by P1.20/kg effective 01 August 2015. It was due to a drop in LPG Contract Price by US$26.50/MT to US$389.50/MT this month, from US$416.00/MT in July.

Year-to-date, gasoline has net increase of P2.16/liter, diesel with a net decrease of P3.39/liter and LPG with a 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