WORLD OIL PRICES (August 26-30, 2013 trading days)

Oil prices rose during the week on concerns about escalating violence in Syria and Libya, showing oil exports and production at the lowest levels since the 2011 civil war, and in Nigeria, where industrial-scale oil theft, sabotage and technical problems have hit output massively. Fortunately, market analysts noted that global oil inventories remain at healthy levels.

Further, since the announcement of the Obama Administration of its consideration of a military strike against Syria in response to the Assad regime’s use of chemical weapons, benchmark oil prices have increased by several dollars, as investors worry that possible violence in the region could harm oil production or shipments.

Market strategists say that instability in the Middle East and the potential for increased volatility may put the risk on the upside for oil. Any prolonged disruptions to pipeline supply could send oil prices back to this year’s highs, it added.

For the products market in Asia, Platts noted that gasoline sentiment remains bearish as a surge in gasoline prices threatens to further weaken buying interest. Demand from Indonesia, the region’s largest gasoline importer, has tapered following the end of Ramadan, and traders say that the slump in the Indonesian rupiah versus the US dollar will further curb its appetite for imported gasoline.

Meanwhile, the high sulphur gasoil markets have not firmed much due to sluggish demand in Indonesia and Vietnam, and high stocks of 500 ppm sulphur gasoil in the Middle East. Though as of late August, cargoes for gasoil/diesel have been moving steadily out of India and South Korea for the Western markets.

Overall, Dubai crude rose more than US$3/bbl. MOPS gasoline also rose in the same period by about US$4/bbl, as well as MOPS diesel with an increase of about US$2/bbl.

FOREX: Peso depreciated against the US dollar by P0.39 to 44.58, from P43.19 in the preceding 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 3 September 2013, most of the oil companies implemented an increase in the prices of gasoline between P1.25 – P1.35 per liter, diesel by P1.00/liter and kerosene by P1.15/liter.

The LPG industry also increased their prices between P2.55/kg – P4.00/kg (VAT exclusive) effective 1-2 September 2013. Said adjustment was due to increase in the LPG Contract Price by US$47.50/MT for September to US$867.50/MT, from US$820/MT in August. Some of the companies explained that part of the local increase was due to upsurge in freight charges driven by higher fuel costs.

The year-to-date net increase in gasoline and diesel rose to P3.24 and P4.08 per liter, respectively. LPG stands now at a net decrease of P1.89/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