WORLD OIL PRICES (December 2-6, 2013 trading days)

Dubai crude ranged from US$107 to US$109 over the week, resulting to an average slightly lower than in previous week. Steady progress in settling the dispute over Iran's nuclear program counterweighed geopolitical risks in Libya, mentioned to have been driving crude prices higher.

Iran announced to fellow OPEC members in the 04 December 2013 meeting of the Organization of Petroleum Exporting Countries (OPEC) its plan to pump up to 4 million barrels a day once sanctions on its crude exports are lifted. Iran produced about 3.8 mil b/d to 3.9 mil b/d before sanctions has been enforced. Libya also hopes to increase output to 2 million barrels a day once unrest ebbs.

Also in the same meeting, OPEC agreed to keep its production target unchanged at 30 million barrels per day until their next meeting in June 2014. Reports disclosed that most OPEC member countries are reluctant to cut back their supply at this time. The group kept the said production ceiling in place since January 2012.

In the Asian products market, Platts noted that sentiment in the Asian gasoline market continued to be subdued as the product's cracks remained under pressure this week amid thin buying interest in the Singapore market. The change in gasoline specifications in the Singapore spot gasoline market from January 1 is limiting appetite for cargoes of current specifications. Platts will begin reflecting gasoline with a minimum distillation temperature of 80 degrees Celsius at T50 and a minimum density of 720 kg/cubic meter.

On the other hand, the gasoil/diesel market continued to show resilience, on concerns over re-supply in the region even as demand from regional centers remains tepid. Reduced gasoil production from refineries amid weak refining margins earlier and increased kerosene production for the winter were some reasons behind the reduced gasoil in the region. Platts added that with supply tightening on lower production from regional refineries, any incremental demand in the prompt period will add support to the market.

Week-on-week Dubai crude had marginal decrease of US$0.15/bbl. MOPS gasoline increased by US$0.14/bbl, as well as diesel by almost a dollar.

FOREX: Week-on-week Peso per US dollar rate depreciated by P0.02 to 43.80, from P43.78 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 today, 10 December 2013, most of the oil companies implemented a price increase of P0.30/liter for diesel and P0.55/liter for kerosene. There was no adjustment on gasoline prices.

Year-to-date net increase for diesel rose to P4.38/liter, while gasoline and LPG remained at P2.04/liter and P13.93/kg, respectively.

* RON 95

For more information, call the

Department of Energy:
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Email: oilmonitor@doe.gov.ph
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