WORLD OIL PRICES (July 8-12, 2013 trading days)

Global oil prices sustained surge, and kept Dubai crude above the US$100 levels, as political turmoil in Egypt raised concerns about supply disruptions at the Egyptian-controlled Suez Canal and the Suez-Mediterranean pipeline.

The price hikes was further supported in mid-week by the announcement of the US Federal Reserve to keep stimulus program, given the country’s tame inflation and still fragile labour market.

Moreover, the US-DOE’s Energy Information Administration inventory data showed the country’s oil stocks fell by about 10 million barrels for a second consecutive week. This has added pressure on prices as it indicates that oil demand is trying to catch up with the economic recovery in the United States. Report also noted that refinery demand was at its strongest in six years.

Meanwhile at Platts, Asian gasoil market reversed the downward momentum seen earlier in the week to claw up marginally, with a slightly stronger crack and time spread. This was despite higher middle distillates stocks recorded for the week ended July 10 in the key trading hub of Singapore.

On the other hand, Asian benchmark gasoline rose sharply, as it spiked by about US$3 to US$4 last Wednesday and Thursday, pushed up by bullish fundamental outlook for the region and strong gains in US RBOB gasoline cracks. Strong Indonesian demand coupled with unplanned refinery shutdowns in India and Malaysia left the market extremely tight. For the week ended July 10, Singapore light distillate inventories fell 7.6% to 8.53 million barrels, a three-week low, Platts noted. With most of Indonesia's 11.60 million-barrel term purchase in August scheduled to be lifted in the first half of the month, the market is expected to be facing a supply crunch. Vietnamese spot demand coming out for the first half of August will also add up to the crunch.

Overall, Dubai crude increased week-on-week by almost US$3/bbl. MOPS gasoline and diesel also escalated in the same period by more than US$5 and US$2, respectively.

FOREX: Peso depreciated against the US dollar by P0.13 to P43.33 last week, from P43.46 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, 16 July 2013, most of the oil companies implemented an increase of P1.60/liter for gasoline, P0.75/liter for diesel and P1.00 for kerosene.

With these adjustments, the year-to-date net increase for gasoline and diesel rose to P3.40/liter and P2.23/liter, respectively.

LPG remained at a year-to-date net decrease of P6.48/kg.

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