WORLD OIL PRICES (For April 23-27, 2012 trading days) 

Crudes and petroleum products extended this month’s decreases partly due to revived talks between Iran and major powers about Tehran's disputed nuclear program until last Tuesday, when prices slowly recovered resulting to a slightly higher week-on-week average price of diesel of US$0.50/bbl. However, the averages of Dubai crude and gasoline were still lower than in preceding week by around US$0.30/bbl and US$1.00/bbl, respectively.

The following were the reasons of the week’s movements in crude prices, which also affected finished products:

• Traders and analysts are skeptical that negotiations between Iran and the West will succeed and a European Union embargo on Iranian crude set for July looms.
• The evidence of rising output from OPEC producers has capped price gains. OPEC produced about 28.5 mil b/d in March, the highest since 2009 when member countries strongly emphasized their firm commitment to cut output by 4.2 mil b/d from 29.045 mil b/d in September 2008.
• A large buildup in U.S crude inventories was also weighing on prices. Crude stocks rose almost 4 million barrels in the week to April 20, up for a fifth week in a row, the U.S. Energy Information Administration said. The average forecast in a Reuters poll had called for a 2.7-million-barrel build. U.S. gasoline stockpiles fell by a larger-than-expected 2.24 million barrels, a 10th consecutive week of decline.

Platts pointed out in news last Friday of generally weak fundamentals of diesel as several refineries returned from turnaround. Refineries in South Korea, Australia and New Zealand are restarting in the coming weeks, all of which would boost supply at a time of lackluster demand.Meanwhile, gasoline remained supply-driven, with the tightness in prompt supply seen lasting throughout May. Much of the tightness was driven by an exodus of Indian supply to the Middle East, as alternate supply into the Mideast from the West of Suez markets headed elsewhere amid heavy turnarounds in the Mediterranean. And while there were little spot demand emerging in Asia, the region remained underpinned by imports of near-9 million barrels by Indonesian state-owned Pertamina.

FOREX: The week-on-week average of peso appreciated against the US dollar by P0.08, from P42.68 two weeks ago to P42.60 last week.
Other recommended reference sites: (1) (2) http://www.med.govt.nz/ers/oil_pet/prices/prices.html

DOMESTIC OIL PRICES

Effective 30 April 2012, most of the oil companies implemented a decrease of P0.30/ for unleaded gasoline and P0.60 for regular gasoline. There were no movements on the prices of diesel and kerosene.The year-to-date net increase for diesel and gasoline are P2.14 and P4.90 per liter, respectively.

As monitored, shown below are the retail prices in Metro Manila beginning 30 April 2012.

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