WORLD OIL PRICES (For April 30-May4, 2012 trading days)

Dubai crude price had marginal increase over previous week, contrary to gasoline and diesel that have decreased by nearly US$2 and US$1 a barrel, respectively. Daily postings of the week’s prices initially extended from previous week increases but have swiftly declined by about US$2 to US$3 a barrel in the last two trading days after a US official data showed a bigger-than-expected rise in US crude oil stockpiles and reports of slowdown in American labor market, sparking fears of falling demand in the world's top oil consumer. An indication by the Organization of the Petroleum Exporting Countries (OPEC) that it wanted to scale prices down to sustainable levels was also bearing down on the market. Platts news quoted OPEC's secretary general Abdullah El-Badri saying that the oil producers' group was not happy with recent high oil prices of over $110/barrel, as such levels could have a negative effect on world economic growth. Badri said US$100/bbl was a comfortable price for both producers and consumers. OPEC was producing well above its ceiling of 30 million b/d agreed late last year, and that in March, the group reportedly produced a total of 32.3 million b/d. Since the group was producing well above demand for OPEC crude, the Secretary General suspected that speculation was the main reason for the high price. "Nobody can convince me that there is no speculation," he said, pointing to a paper market that trades 4 billion b/d of oil.Meanwhile, Platts assessment disclosed that despite the declines in the prices of gasoline, the market remains positive as the tightness in the prompt supply, as well as the approaching US driving season, was underpinning demand for the auto fuels. On the other hand, the downward trend in diesel was under pressure from steep drops in crude. While market sources have mixed opinion as to whether the fall in outright prices of diesel would lift demand, most traders believe that current prices are still fundamentally high for an increase in demand. Outright prices have actually fallen more due to sluggish economic data.
FOREX: The week-on-week average of peso appreciated against the US dollar by P0.37, from P42.60 two weeks ago to P42.23 last week.
Other recommended reference sites: (1) (2) http://www.med.govt.nz/ers/oil_pet/prices/prices.html

DOMESTIC OIL PRICES

Effective today, 8 May 2012, most of the oil companies implemented a decrease of P0.70/l for unleaded gasoline, P0.60 for diesel, P0.90 for regular gasoline, and P0.50 for kerosene. The year-to-date net increase for diesel and gasoline are P1.54 and P4.20 per liter, respectively.

As monitored, shown below are the retail prices in Metro Manila beginning 8 May 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