WORLD OIL PRICES (July 22-26, 2013 trading days)

Dubai crude has elevated to three-month high last Monday, 22 July 2013, but gradually seesawed lower by the end of the week, chasing other crude benchmarks Brent and WTI. Demand growth concerns following the release of China’s weak economic data, the US dollar’s strengthening against some major currencies and seemingly supply surge in the US had predominant effect over the week’s price trend.

China's factory activity for July dropped to its lowest level in eleven months amid a continued slide in new orders and faster de-stocking, as disclosed by survey of Markit Economics and HSBC. The purchasing managers' index, an indicator of the country's factory sector performance, dropped to 47.7 in July from 48.2 in June. An index reading below 50 suggests deterioration in activity.

Analysts were also of the opinion that ample supply supported oil prices. Crude production in the United States, the world’s top consumer, reportedly rose to 7.56 million barrels a day, the highest since 1990, according to the US Energy Information Administration. Thus, confirmation of a fall in US oil inventories in the week ending 19July 2013 failed to support prices.

Meanwhile, Platts noted that Asian gasoil market was generally steady on lower demand expected from Indonesia and Saudi Arabia after the holy week of Ramadan. Supplies though, remain relatively tight due to refinery outages and lower runs in Japan, Taiwan and the Middle East.

For gasoline, Asian benchmark sank to two-month low last Tuesday, 23 July 2013 as a surge to multi-year highs earlier this month drew heavy selling interest into the market. Singapore's light distillates inventories however, rose in the week ending July 24, recovering from a more than fouryear low the previous week. But supply was still seen as limited after Indonesia imported large quantities, and was further exacerbated by refinery issues, with Taiwan's Formosa reducing runs due to a mechanical glitch.

Overall, week-on-week average of Dubai crude rose by merely forty cents. MOPS gasoline decreased by about US$6.50/bbl, similar with diesel that also slipped week-on-week by US$0.70/bbl.

FOREX: Peso appreciated against the US dollar by P0.13 to P43.29, from P43.39 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 27 July 2013, most of the oil companies implemented a roll back of P1.70/liter for gasoline and P0.25/liter for diesel.

Said adjustments include the impact of the biofuels, bioethanol for gasoline and CME for diesel.

With the said price rollbacks, the year-to-date net adjusments for gasoline and diesel stands now at a net increase of P2.20 and P2.33 per liter, respectively.

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