WORLD OIL PRICES (Feb 25-Mar 1, 2013 trading days)

Dubai crude declined week-on-week by about US$3.40/bbl. MOPS gasoline decreased as well in the same comparative period by almost US$5/bbl; diesel dropped by US$4.40/bbl.

Brent exhibited a downward trend in two consecutive weeks. In the same way, Dubai crude continuously receded since last week, hitting a three-month low last Friday, amid political turmoil in indebted eurozone nation Italy and concerns over world economic developments.

In Europe, economic situation remains extremely sluggish, moreso, that political turmoil in Italy, where citizens are strongly discontented with the government's fiscal reconstruction policy. Moreover, the Manufacturing Purchasing Managers Index in Europe of 47.9 points in February remained in the contraction zone, and unemployment in the 17-nation bloc rose to a record 11.9 percent in January, with nearly 19 million people out of work.

In the US, while there have been signs of the country’s improving economy in recent weeks, attention was lately focused on the increasing likelihood that about $85 billion in spending cuts could start taking effect shortly, as part of an earlier budget agreement between the White House and Congress. The International Monetary Fund has predicted that the spending cuts could reduce U.S. growth by some 0.5 percentage point in 2013.

As demand worries grew in the US and Europe, another reason for concern over the pace of growth is China's Purchasing Managers' Index (PMI) in the manufacturing sector, which showed that the index fell to 50.10 in February, from 50.40 in the previous month. A reading above 50 indicates expansion, but analysts had expected the country’s manufacturing sector to record an expansion of 50.90 in February.

For MOPS gasoline and diesel, Platts noted that the Asian market has been fundamentally stronger than the West in recent days, with the refinery turnaround season coming into full swing in March. The Europe market has been reportedly weakening lately, despite a cold snap over much of Northwest Europe.

Looking ahead, analysts foresee oil prices to unlikely rise much in the short term as demand remains weak and supply is abundant.

FOREX: The week-on-week peso per US dollar depreciated by P0.04 to P40.71, from P40.67 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 3 March 2013, most of the oil rolledback their prices by P1.20/liter for gasoline, P1.15/liter for diesel, P0.95/liter for regular gasoline and P1.35/liter for kerosene.

With the adjustments, year-to-date net increase declined further to P1.85/liter for gasoline and P0.55/liter for diesel.

Meanwhile, LPG companies also rolled back their prices by P0.60/kg or P6.60/11kg (VAT exclusive) effective 1 March 2013, as LPG Contract Price (CP) decreased this month by US$14/MT to US$895, from US$910/MT in February.

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