WORLD OIL PRICES (July 29-Aug 2 2013 trading days)

Dubai crude was relatively stable as it traded between US$104 to US$105 a barrel over the week. However, a better than expected newly released manufacturing data from the United States and China signified an upward trajectory as it brightened the outlook for demand in the world's two largest oil consumers.

In the U.S., the Federal Reserve showed its continued economic support by offering no signs to curb its bond-buying stimulus at its next meeting in September.

Another reason that relatively provided support to prices was the euro zone's manufacturing sector that grew in July for the first time in two years. It is the latest signal that the economy of the 17-nation euro zone has begun to stabilize at low levels after 18 months of recession.

By the end of the week, Dubai crude leaped more than a dollar on the back of continued political turmoil in Yemen and Libya. Yemen's main oil export pipeline was blown up by Tribesmen for the second time in 10 days, halting the flow of crude. Moreover, threats of terrorist attacks have also led to the closure of Britain embassy in Yemen, as well as ten (10) US embassies in the Arab nations.

Meanwhile, Asian gasoil/diesel market remained generally weak by end-July, with cracks, structure and cash premiums largely lower, Platts noted. But reports of diesel shortage in Malaysia brought prices higher by almost US$2 a barrel last Friday, 2 August 2013. Selling with subsidy was blamed for the product shortage.

Asian gasoline continued to sell off, with the benchmark 92 RON gasoline crack hitting a 12-week low amid growing caution in the regional market, as the peak Indonesian season nears its end. Record high Indonesian imports of 12 million barrels in August, on top of already heavy July buying, lifted market premiums to multi-year highs earlier this month, prompting a wave of cargo inflows into Singapore from India and even from unusual sources like the Middle East and Europe.

Overall, Dubai crude decreased week-on-week by merely thirteen cents. MOPS gasoline likewise decreased in the same comparative period by about US$2, as well as diesel by half cents.

FOREX: Peso depreciated against the US dollar by P0.22 to P43.48 last week, from P43.26 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, 6 August 2013, the oil companies rolled back gasoline price by P0.35 while the price of kerosene was increased by P0.25 per liter. No adjustment was implemented on diesel.

For LPG, an increase of P1.55/kg (VAT exclusive) was implemented on 1 Aug 2013. Said adjustment was due to the increase in LPG Contract Price for August by US$28.50/MT to US$820/MT, from US$791.50/MT in July.

Including the said adjustments, year-to-date net increase for gasoline reduced to P1.85 per liter, while diesel remained at P2.33/liter. LPG on the other hand has a net decrease of P4.75/kg, as shown in the following table.

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