WORLD OIL PRICES (September 16-20, 2013 trading days)

Global crude prices fell Monday and Tuesday after the U.S. and Russian officials reached a deal to strip Syria of chemical weapons. Analysts noted that this development eased investor worries, and has gradually taken out the risk premium of potential US military action against Syria. Prices were also pressured by the statement of Iran's new atomic energy chief to settle the country’s decade-old nuclear dispute with the West.

Oil prices however rebounded by midweek following the news that the US Federal Reserve decided to refrain from tapering its $85-billion-a-month bond-buying program. Oil contracts had surged by more than two dollars as the Fed’s unexpected decision boosted demand hopes in the energy market.

The price uptick was also supported by reports that US crude oil inventories fell by 4.4 million barrels last week, greater than forecasts of 1.2 million barrels. The U.S. gasoline and diesel fuel stocks likewise declined in the same period, apparently indicating a very strong US oil consumption, analysts noted.

By the end of the week, prices dropped back by more than a dollar as the market immersed with news of improved Libyan output and signs of diplomatic progress in Syria. Sign of Iran's inclination to settle its ongoing standoff with the West helped drain some of the geopolitical risk from the market.

As regards the Asian products market, Platts noted of continued weak gasoline fundamentals and limited outlets for regional supplies. But exports continued to outweigh imports for a second week in a row, suggesting a drop in inflows to Singapore amid a sharp weakening in gasoline cracks.

On the other hand, the market structure for FOB Singapore 500 ppm sulfur gasoil/diesel continued to weaken with stocks rising in Asia as opportunities to send cargoes to the West/Europe shrank further.

Overall, Dubai crude declined week-on-week by about US$1.40/bbl. MOPS gasoline likewise decreased in the same comparative period by US$1.20/bbl, as well as MOPS diesel with a decrease of US$1.50/bbl.

FOREX: Peso appreciated against the US dollar by P0.52 to P43.42, from P43.94 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 23 September 2013, most of the oil companies implemented a decrease of P0.70/liter for gasoline, P0.90/liter for diesel and P1.00/liter for kerosene.

Including the said rollbacks, year-to-date net increase in gasoline and diesel was reduced to P1.24 and P2.38 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