WORLD OIL PRICES (Nov 4-8, 2013 trading days)

Dubai crude price dipped to almost four-month low during the week, trailing Brent and WTI that have been waning since last week due to the following reasons:

• Lower-than-expected increase in U.S. crude stockpiles, the seventh week consecutive increase, expanding by 1.58 million barrels to 385.4 million, according to the US-DOE’s Energy Information Administration;
• European Central Bank unexpectedly cut its benchmark rate to a record low, which strengthened the US dollar. This makes the dollar-denominated oil more expensive for holders of other currencies;
• Continued progress in talks between Iran and the West over Tehran's disputed nuclear programme. Although both sides confirmed that agreement is still uncertain, world powers is expected to certainly find a breakthrough deal with Iran to start resolving the decade-old dispute, analysts noted.

Analysts however believed that the situation in Libya, where crude production slimmed down to about 10 percent capacity of 1.25 million b/d and news of implied oil demand increase in China by 0.3 percent in October limits the downsides in oil prices.

Meanwhile, Platts highlighted that Asian gasoline market remained weak though a heavy draw in US stocks provided some support to market sentiment. There has been little sign of Southeast Asian demand this week, with only a small buy tender in Vietnam and earlier purchases by Indonesia.

On the other hand, supply tightness in the Asia Pacific and demand from Indonesia continued keep the Asian gasoil/diesel market firm this week. According to Platts, Indonesia is expected to buy close to 5 million barrels of gasoil for November, extending its buying spree from October due to a scheduled turnaround at its 125,000 b/d Balongan refinery.

FOREX: Peso per US dollar rate depreciated week-on-week by P0.09 to 43.27, from P43.18 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 10 November 2013, most of the oil companies implemented a decrease of P0.60 for gasoline and P0.70 for diesel and kerosene.

Year-to-date net increase for gasoline and diesel stands now at P0.14 and P1.93 per liter respectively.

* RON 93

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