WORLD OIL PRICES (January 6-10, 2014 trading days)

Crude prices were on mixed trade but average for the week was lower than in previous week due to the
following:

• US crude supplies fell for a sixth straight week in the week ended 3 Jan 2013, but the decline of by 2.7 million was less than Platts analysts expectation of 3.3 million barrels;
• Big increase in the US gasoline and distillate inventories that raised expectations of a supply glut;
• Expectation of more oil from Libya, where output is back up to 546,000 barrels a day from 250,000 barrels a day. Libya normally produces nearly 1.5 million barrels a day.

While analysts believe that oil prices are likely to continue to face downward pressure with greater Libyan output they do not expect Libya to be able to return to its previous normal output soon - following the incident where two oil tankers were stopped by Libya's navy ships from entering the Al-Sedra port in Cyrenaica. The conflict with the navy escalated after representatives of the self-declared Cyrenaica regional government vowed to resume oil exports.

For the products market, Platts noted that gasoline was largely steady over the week due to a build in US and Singapore inventories. Asian gasoline market was quick to react to a build in US stocks amid lack of fresh regional cues. Light distillates inventories in the trading hub of Singapore also saw a sharp jump in the week to January 14 as stockpiles rose 18% week on week to 12.78 million barrels as of 8 January 2014.

Meanwhile, fundamentals in the Asian gasoil/diesel market were steady amid pockets of demand from Indonesia, Vietnam and Sri Lanka. Overall demand in Asia Pacific was still described as "weak," but supply is expected to tighten next month with some scheduled refinery turnarounds.

Overall, week-on-week Dubai decreased by about US$3.30/bbl. MOPS diesel and gasoline decreased as well by about US$3.60/bbl and US$3.70/bbl, respectively.

FOREX:  Week-on-week Peso per US dollar rate depreciated by P0.24 to P44.73, from P44.49 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 13 January 2014, most of the oil companies implemented a decrease of P0.85/liter for gasoline, P0.90/liter for diesel and P1.10/liter for kerosene.

To-date, gasoline and diesel have a total net decrease of P0.85 and P1.35 per liter, respectively .

* 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