WORLD OIL PRICES (September 23-27, 2013 trading days)

Global oil prices sustained a generally downward movement during the week except last Wednesday, when prices modestly boosted by almost a dollar as traders get back into the market on relief of geopolitical risks.

Following were the reasons behind prices declines:

• Diplomatic progress in Syria
  • U.S. and Russian officials reached a deal to strip Syria of chemical weapons
  • UN may back a U.S.-Russian plan to rid Syria of chemical arms this week
  • Eased investor worries and has gradually taken out about US$9 risk premium of potential US military action
• Iran's inclination to settle its ongoing standoff with the West on its nuclear programme
  • U.S. Secretary of State John Kerry and Iranian Foreign Minister Mohammad Javad Zarif are scheduled to meet Thursday to start high-level negotiations
  • Raised the chance of more Iranian oil sales after years of sanctions that have cut oil exports by more than one million b/d
  • United Nations are fueling cautious hope for progress after a decade of failed diplomacy.
• Rising oil supplies from Iraq and Libya
  • Production from Rumaila, the workhorse of Iraq’s oil industry, had climbed to around 1.35 million bpd on Sunday after the pipeline leak cut output last week to 870,000 bpd
  • Iraq has decided to evaluate all its key oil pipelines in the south to avoid future disruption from technical problems
  • Libya is also gradually ramping up output after protests crippled its oil sector

Meanwhile, Asian oil products prices seesawed during the week. Gasoline market sentiment came under renewed pressure Friday, after a spike earlier this week, as cracks were weighed down by strong selling interest. Sentiments in the gasoil/diesel market also firmed Friday, as tight supply in the Middle East for the 500 ppm grade due to lower runs from refinery glitches and scheduled maintenance met robust demand from the grade from Africa.

FOREX: Peso appreciated against the US dollar by P0.09 to P43.34, from P43.42 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 30 Sep 2013, most of the oil companies implemented price rollbacks of P0.10/liter for gasoline and P0.55/liter for diesel.

These adjustments reduced the year-to-date net increase in gasoline and diesel to P1.14 and P1.83 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