WORLD OIL PRICES (For January 14-18, 2013 trading days)

A series of data showing worsening economic conditions in Europe (e. g. 17-year low in car market and Germany’s downgraded growth forecast for 2013) and the on-going uncertainty surrounding an agreement over the US debt ceiling weighed across financial markets and have driven oil prices lower by about a dollar. The downward pressure was further supported by weak crude demand forecasts by the Organization of Petroleum Exporting Countries (OPEC) and US-Energy Information Administration (EIA) for 2013.

Despite unchanged world oil demand growth in 2013, OPEC expected a year-on-year marginal decline in OPEC crude requirement by 0.2 mb/d. Hence, OPEC crude requirement in 2013 is seen to average 29.6 mb/d, down by 0.4 mb/d from the previous year. EIA on the other hand, expects that 2012 demand growth of 0.90 million b/d will remain about the same over the next year before picking up again in 2014.

However, despite concerns about a weakening global economic outlook and demand worries, some analysts are of the opinion that prices may not plunge further from current
levels on renewed tension in the Middle East that may spark supply worries. Crude and gas prices also firmed up last Friday after the Islamist militants’ attack on Algeria’s energy facility, creating uncertainty of energy supply to the region. Personnels were taken as hostages and some were even killed. The facility is being run by BP, PLC, Statoil ASA and Algerian state oiland- gas company Sonatrach. Algeria, an OPEC member producing about 1.2 million b/d of oil, is the ninth-largest global gas producer and fifth-largest exporter, 11 per cent of which goes to the European gas market.

On Platts assessment, it noted strong demand for gasoil due to below zero temperatures over parts of Western Europe, and emerging demand from other regions such as the
Mediterranean, West Africa, and the US.

Week-on-week, Dubai crude declined by about half a dollar, to US$107/bbl. MOPS gasoline and diesel also decreased by nearly US$1.50 and US$0.40, respectively.

FOREX: The week-on-week peso per US dollar appreciated by P0.17 to P40.67, from P40.78 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 today, 21 January, the oil companies implemented a decrease of P0.45/liter for gasoline and P0.25/liter for diesel.

These adjustments resulted to a month-to-date net decrease in gasoline of P0.70/liter and that of diesel of P0.15/liter.

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