WORLD OIL PRICES (Mar 18-22, 2013 trading days)

Dubai crude fell week-on-week by about fifty cents a barrel. Similarly, MOPS gasoline dropped by more than a dollar, as well as diesel by about two dollars per barrel.

While there were news of market optimism in the US and China, i.e. assurance of the US Federal Reserve to keep up its pace of bond buying to spur the US economic growth, healthy manufacturing sector in China in March, and the unexpected drop of U.S. inventories in the week ending March 15, concerns about Europe economy tend to have outweighed and motivated price movements during the week, specifically on reports that:

• US dollar strengthened after an unusual bank bailout proposal for Cyprus threatened to trigger fresh turmoil in the Eurozone;
• Finance ministers in the Euro area reached an agreement on March 16 forcing depositors in Cypriot banks to share in the cost of the latest bailout estimated at 5.8 billion euros ($7.6 billion).
• German manufacturing output unexpectedly contracted in March, signalling the euro-zone debt crisis is slowing growth in the region’s biggest economy;

Moreover, Platts noted over the week’s assessment that market outlook for diesel/gasoil were being weighed down by low regional demand and growing concerns on possible increase of exports from China and India. East Asian gasoil demand is anticipated to remain low into the second quarter, as the region's top demand centers, like Vietnam and Indonesia, continue to limit their spot purchases.

On the other hand, gasoline was assessed to have recovered from supply crunch as prices showed downward correction from earlier highs. The gradual return of refineries from maintenance season is also factoring in the market.

FOREX: Philippine Peso depreciated against the US dollar by P0.11 to P40.73, from P40.62 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, 25 March 2012, most of the oil companies implemented their price rollbacks, the 
fifth consecutive week of decreases, i.e. P0.25/liter for gasoline, P0.55/liter for diesel and 
P0.70/liter for kerosene.

Year-to-date net increase for gasoline stands at P0.25/liter, while diesel has a net decrease of 
P0.95/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