WORLD OIL PRICES (June 10-14, 2013 trading days)

Dubai crude hovered around US$100/bbl over the week, resulting to an average of about a dollar higher than that of the previous week. MOPS gasoline also gained this week by nearly US$1.50/bbl, as well as diesel by about US$2.50/bbl.

There were slight changes in the week’s daily postings except last Friday, 14 June 2013, when prices spiked by about two dollars on concerns of the escalating civil war in Syria. Although Syria is not a key global oil supplier, investors are worried that it could lead to unrest in oil-producing regions of the Middle East, which pumps more than a third of the world's oil. Syrian conflict is also a key, as it boarders Iran and Iraq which produce about one-fifth of OPEC's oil output. Worries over supply disruptions in Libya and Sudan also added concerns in oil producing nations.

Crudes also garnered some strength from speculations over Fed’s stimulus measures and the latest data that showed stronger-than-expected retail sales in the US.

However, subdued global energy demand limited the price rebound, as the following factors provided balance in the oil market:

• Energy Information Agency report that U.S. crude supplies grew by 1.3 million barrels in the week ending June 7, while gasoline stocks increased by 3.3 percent to 7.4 million barrels.
• Oil supplies are about 8 percent higher than a year ago, and oil production in the U.S. — at 7 million barrels per day — is at levels not seen since the 1990s, indicating an ample supply in the world’s biggest oil consumer.
• International Energy Agency statement that modest economic growth was limiting oil demand worldwide, and some developed economies would see absolute declines in oil consumption in 2013.
• Cut in the global oil demand growth forecasts by both OPEC and the U.S. Energy Information Administration (EIA) last Tuesday. OPEC trimmed its forecast for 2013 world oil demand growth by 10,000 barrels per day, while EIA cut both its 2013 and 2014 world oil demand growth forecasts by 20,000 barrels per day.

FOREX: Peso depreciated against the US dollar by P0.89, to P42.95 last week, from P42.06 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, 18 June 2013, most of the oil companies implemented an increase in gasoline by P1.05/liter, diesel by P1.45/liter and kerosene by P1.30/liter.

These adjustments resulted to a year-to-date net increase of P1.30/liter for gasoline and P0.58/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