WORLD OIL PRICES (July 13-17, 2015 trading days)

Crude prices generally tumbled during the trading week following the announcement that Iran and major world powers reached a deal to monitor Tehran's nuclear programme. The West says the deal will curb Iran’s efforts to build a nuclear bomb. Compliance of Iran with the terms of the agreement will eventually pave the way for the removal of Western sanctions and the gradual return of Iranian oil to the global market next year.

Concerns over the impact of the expected abundance of Iranian crude eased in the midweek and somehow caused prices to settle slightly higher. But reports of slower crude imports by China in the first six months this year vs in same period in 2014, stronger dollar and continued speculation of excess supply from Iran put pressure on crude and caused sustained price declines on Thursday. Singapore market was closed Friday on Eid al-Fitr holiday.

Analysts believed the rising US dollar weakened oil futures despite US crude draw. The dollar gained ground against other major currencies after Federal Reserve Chair Janet Yellen told lawmakers the central bank was on path to raise short-term interest rates this year. Stronger dollar makes dollarpriced crude oil less attractive to buyers using other currencies.

Meanwhile, the Asian gasoline market continued to trend downward up to Thursday, ahead of the Eid al-Fitr holiday in Singapore on Friday, on sluggish demand.

Similarly, the Asian gasoil/diesel had deepened contango as of Friday on excess volumes that continued to inundate the market, and with high freight preventing the barrels from moving out of the region. Further, Platts stated that overall demand was tepid.

Overall, Dubai fell further by US$0.70/bbl. Likewise, MOPS gasoline decreased by US$0.90/bbl and diesel by more than a dollar.

FOREX: Peso/US$ rate depreciated further by P0.04 to P45.20, from P45.16 in previous 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 21 July 2015, most of the oil companies implemented an oil price rollback, i.e. P0.20/liter for gasoline and kerosene, and P0.50/liter for diesel.

Year-to-date net increase for gasoline reduced further to P3.19/liter while that of diesel stands now at a net decrease of P1.89/liter. LPG remained at P7.05/kg.

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