WORLD OIL PRICES (July 20-24, 2015 trading days)

Crude oil prices continued its downtrend in view of the following reports:

• US Crude Inventory. U.S. crude oil stocks rose 2.5 million barrels in the week ending 17 July to above the five-year seasonal average, per the Energy Information Administration (EIA) data. Analysts expected for a 2.3 million-barrel drop.
• Iran Nuclear Deal with the West. Iranian nuclear deal with the West is expected to release millions of barrels of additional supply onto the already over-supplied world markets.
• OPEC production stance. OPEC members stressed that lower prices will not deter the group to keep output high to defend market share.
• Oil surplus. The ability of the global economy to absorb a surplus of oil continues to be a key market concern.
• US dollar strength. The dollar boosted after Federal Reserve chair Janet Yellen released a forecast for an increase in the US central bank's key interest rate later this year, as the economy picks up pace. Since oil is priced in dollars, a stronger US currency makes the commodity more expensive, denting demand and putting downward pressure on prices.
• U.S. drilling activity. US data Friday 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.

Meanwhile, the Asian gasoline market reportedly remains largely stable as of Friday, amid a lack of fresh spot buying and lackluster demand in the region. Platts noted that traders in the region shrugged off data showing a decline in US gasoline inventory, saying repairs at US Gulf Coast refineries would soon replenish
supply in the area.

As for diesel/gasoil, Platts stressed of a deeper contango in the Singapore gasoil market structure on mounting supplies and sluggish demand for 500 ppm and high sulfur gasoil. Platts added that there are also no signs of raising demand in the region.

Overall, Dubai crude had extended decrease of over a dollar per barrel. Likewise, MOPS gasoline
decreased by US$2.40/bbl and diesel by more than US$2.00/bbl.

FOREX:   Peso/US$ rate depreciated further by P0.12 to P45.42, from P45.20 in previous week.  

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

DOMESTIC OIL PRICES

Most of the oil companies implemented price rollbacks of P0.60/liter for gasoline and diesel, and P0.45/liter for kerosene effective 28 July 2015.

Year-to-date adjustments are now at net increase of P2.59/liter for gasoline and net decrease of P2.49/liter for diesel. LPG remained at P7.05/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