WORLD OIL PRICES (January 20-24, 2014 trading days)

Global oil prices struck two-week highs this week buoyed by forecasts of the International Energy Agency (IEA) of stronger crude demand, and as the International Monetary Fund (IMF) lifted its prediction for global economic growth by 0.1 percentage point to 3.7 percent for 2014.

The optimistic outlook was said to have been fuelled by solid growth in the United States as other countries in Europe and Asia also move away from austerity budgets.

Oil prices further edged higher by the end of the week as a surprisingly sharp decline in US distillate supplies buoyed IEA’s forecasts of stronger demand in the world's top crude consumer. Distillate fuel, which includes heating oil and diesel, fell 3.2 million barrels in the week ended January 17.

Specifically for Asia, fundamentals remained stable in the Asian gasoline market despite further weakness in Europe, Platts noted. Western traders said the European gasoline market remain sluggish from low seasonal demand and poor blending margins. However, Asian gasoline market saw strong buying interest as the reforming spread between the premium of 92 RON gasoline to FOB Singapore naphtha was widening. The reforming spread reportedly climbed to a three-month high of $11.51/barrel.

On the other hand, the Asian gasoil market continued was weighed down by over-supply of 10 ppm sulfur gasoil as the Asian arbitrage to Europe remained shut. The supply glut led to cash differentials of 10 ppm sulfur gasoil falling to their lowest level in more than seven months last Wednesday, at $1.25/barrel to the Mean of Platts Singapore Gasoil assessment. The differential was last lower June 4 at $1.14/b. The spread between FOB Singapore 10 ppm and 500 ppm sulfur gasoil crunched to a one-month low of $1.43/b Wednesday.

Overall, Dubai crude increased week-on-week by US$0.90/bbl. MOPS diesel and gasoline increased as well by about US$1 and US$0.60/bbl, respectively.

FOREX:  Week-on-week value of Peso against the US dollar depreciated by P0.34 to P45.23, from P44.89 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 28 January 2014, most of the oil companies implemented an increase of P0.45/liter for gasoline, P0.60/liter for diesel and P0.55/liter for kerosene.

Year-to-date price adjustments stands now at a net decrease of P0.40/liter for gasoline and P0.85/liter for diesel.

* RON 95

For more information, call the

Department of Energy:
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Email: oilmonitor@doe.gov.ph
Website: http://www.doe.gov.ph