WORLD OIL PRICES (May 13-17, 2013 trading days)

After three consecutive weekly marginal increases, Dubai crude decreased this week vs. the previous week by about US$1.50/bbl. MOPS gasoline and diesel increased by about US$0.50/bbl and US$0.15/bbl, respectively.

Crude oil prices receded from previous week postings on expectations of another build-up in U.S. inventories. Per Energy Information Administration (EIA) report, while the U.S. crude stockpiles declined by 624,000 barrels in the week ending May 10 (which is greater than its average forecast of 300,000 barrel), it was not taken as an indicator of a change in trend because gasoline and distillate inventories jumped well above expectations.

Gasoline stockpiles on the East Coast rose by 1.8 million barrels in the week, nearly 10 million barrels higher from the same time last year, as the US heads into the summer driving season.

By the end of the trading week, crude prices rose by more than a dollar, drawing some support from the IEA Oil Market Report that boosted its forecast for global demand in 2013, the first time since January. The IEA raised the 2013 estimates by 65,000 barrels a day, envisioning that world oil use will rise this year by 800,000 a day to 90.6 million. Moreover, the news that the United Nations' nuclear agency failed to persuade Iran to let it resume an investigation into suspected atomic bomb research, reviving worries about supply disruption, also supported yesterday’s trading.

As regards Platts’ assessments on the products market, it noted of a stable demand for gasoil/diesel in the Asian Region, with prompt supply (though fewer from China). Reportedly, China's Unipec and Petrochina have reached export quotas for the quarter and as a result were only exporting small quantities in May. However, export quantities would likely increase in June, though not yet confirmed.

As for gasoline, price declines over the week were partly attributed by heavy selling pressure, and low demand for the product, as market participants mentioned of the underwhelming European market. Further, Platts however noted that the decline was limited, suggesting of bullish market sentiment heading into June.

FOREX: Philippine Peso depreciated by P0.28 against the US dollar to P41.18, from P40.89 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 May 2012, most of the oil companies implemented an increase of P0.35/liter for gasolines and P0.25/liter for diesel.

These adjustments resulted to a year-to-date net decrease of P1.25/liter for gasoline and P1.67/liter for diesel.

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