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

Oil prices rose this week due to the latest round of improving US economic data and violence in South Sudan that stoked concerns about the country's oil production.

Analysts concur that improving US economy, along with signs that global economy is steady, was driving prices higher. In the latest data disclosed by the US Department of Labor, first-time claims for unemployment benefits reportedly fell to 338,000, below the 350,000 forecast by analysts. Said report came after other strong US data on third-quarter growth suggested a healthier economy.

On the other hand, traders were also keeping an eye on developments in South Sudan, which has been rocked by a wave of deadly ethnic violence. Early this week, the UN Security Council voted to increase the UN peacekeeping forces in conflict-torn South Sudan by nearly 80 percent. The country usually exports about 220,000 barrels a day to Japan, Malaysia and China.

Markets were also closely monitoring the U.S. Energy Information Administration weekly report on oil inventories, which was delayed due to the Christmas holidays. Analysts expect a decline in inventories.

For the products, Platts noted of a stable to firm gasoline market, amid supply concerns for January after Taiwan's Formosa Petrochemical reported a partial outage at its 540,000 b/d Mailiao refinery last week. Outlook for regional gasoline demand from Indonesia, the largest importer of gasoline, remained steady with state-owned oil and gas company Pertamina lining up around 10 million barrels of term gasoline imports for January. Meanwhile, Asian gasoil/diesel market remained quiet in the final days of the year amid bearish sentiment and tepid demand. Slow demand was seen from Vietnam and Indonesia for January cargoes, while supply was ample as the arbitrage to send cargoes from Asia to Europe remained shut. Thus, cargoes continued to flow into Singapore from South Korea, Japan and the Middle East.

Overall, week-to-date average in Dubai crude increased by US$0.12/bbl. MOPS gasoline and diesel increased as well by about US$3.50 and US$1.60 per barrel, respectively.

FOREX: Week-on-week Peso per US dollar rate depreciated by P0.11 to P44.41, from P43.30 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 31 December 2013, the oil companies implemented an increase of P1.15/liter gasoline,
P0.75/liter for diesel and P0.60 for kerosene.

Year-to-date net increase stands at P4.68/liter for diesel and P3.59/liter for gasoline.

* RON 95

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