WORLD OIL PRICES (Oct 14-18, 2013 trading days)

Oil prices seesawed during the week. It started higher Monday on the back of political turmoil in Syria and Libya, but was balanced by reports of serious negotiations between Iran and the West, as the former hinted that it was ready to scale back sensitive atomic activities to secure urgent sanctions relief. Investors, however, were carefully focusing on the outcome of talks.

Oil prices were also under pressure, as it slid lower Wednesday, following the release of the American Petroleum Institute’s (API) crude inventory data at the Cushing, Oklahoma. It reportedly rose last week, the first time since early July, while overall US crude stockpiles also gained.

Meanwhile, as both the US Senate and House of Representatives passed the spending measure in the 11th hour, oil investors remained reluctant to lock positions, awaiting the delayed economic indicators, due this week, that would gauge the outlook for US demand.

However, oil prices were reinforced by the weaker U.S. dollar. It fell to its lowest level since February, on expectations that Fed will have to delay scaling back its stimulus following the U.S. government shutdown. A weak dollar boosts oil and other commodities priced in the greenback by making them cheaper for holders of other currencies.

For the products market in Asia, Platts noted that market fundamentals for gasoline had little change, with no fresh cues to the direction of the market.

On the other hand, the bullish momentum in the Asian gasoil/diesel market reversed since mid-week, on expectation of softer demand in November. Indonesia, one of the region's biggest importers, is expected to consume less next month after the Eid al-Adha holidays in October. Vietnam is also expected to have lesser imports on foreseen sluggish domestic consumption and sufficient domestic supplies. As such, supply will likely build with more Indian cargoes expected to hit the Asian market after the closure of the arbitrage window to the West.

Overall, Dubai crude rose by about half a dollar. MOPS gasoline increased as well by more US$1/bbl, while MOPS diesel remained at its previous week level.

FOREX: Peso per US dollar rate, which appreciated week-on-week only one centavo had almost no effect on the week’s price movement.

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 22 October 2013, most of the oil companies implemented an increase of P0.20/liter for gasoline and P0.35/liter for kerosene. There was no movement in the price of diesel.

Year-to-date, gasoline stands at a net increase of P1.14/liter, while diesel remained at P2.78/liter.

* RON 95

For more information, call the

Department of Energy:
Pricing: 840-2187
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Fuels: 840-5669
SMS: (0915) 4469421
Email: oilmonitor@doe.gov.ph
Website: http://www.doe.gov.ph