WORLD OIL PRICES (August 5-9, 2013 trading days)

In celebration of Hari Raya Aidilfitri, Asia’s oil trading hub – Singapore was only open from Monday to Wednesday (5-7 August), when Dubai crude was observed to have receded by about US$2, from the previous week’s peak level. Dubai generally followed the price trend of WTI and Brent that slipped from previous week high by more than US$2 and US$4, respectively.

Prices were on the downward trend as supply worries eased and on caution ahead of data due this week from China and the United States. The upcoming data from these world's two top oil consumers is expected to give the market a sense of the demand outlook for oil, and would also be the basis for the short-term outlook for world oil prices. Some analysts, though, expect it to be in the downside.

Several key data points that are due this week will also be an important factor in ascertaining if the Federal Reserve will start paring back stimulus by next month. It may be noted that a stimulus pullback may boost the U.S. dollar and would therefore make oil expensive for other currency holders.

Other reasons behind the price fall were the announcement of Libya’s plan to boost production by next month, and assurance of the new Iranian President Hassan Rohani to shun extremism and take a moderate approach towards a peaceful solution to the nuclear concerns.

As for the products market in Asia, Platts noted that fundamentals of the gasoline market was largely stable as spot demand in the region remains tepid. Buyers remained on the sidelines despite plummeting gasoline crack values in view of little spot demand. Moreover, the Asian gasoline market continues to take its cue from the US and Europe, which have seen crunching crack values as well.

In contrast, Asian gasoil market is still supported by steady demand from Africa and Asia, reduced supply from North Asian refiners amid refinery woes, and low stock levels in Singapore. Chinese gasoil exports are also expected to stay low in August and September.

Week-on-week, Dubai crude has decreased by US$0.25/bbl. MOPS gasoline likewise slipped so far in the same period by about US$2/bbl. Inversely, MOPS diesel increased by about US$0.30.

FOREX: Peso depreciated against the US dollar by P0.09 to P43.57 last week, from P43.48 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, the oil companies implemented a decrease of P0.50/liter for gasoline and an increase of P0.20/liter for diesel.

Year-to-date, gasoline and diesel now stands at a net increase of P1.35 and P2.53 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