WORLD OIL PRICES (February 24-28, 2014 trading days)

The global oil markets during the week showed marginal fluctuations of prices, supported by mixed reports of export snags in Libya and South Sudan, concern over street protests in Venezuela (a major oil supplier to the U.S.) and weak economic growth in the world’s biggest economy – the US and China.

Specifically for gasoline, fundamentals in the Asian market remained bearish with Platts citing adequate supplies as a factor that weighed on prices. Yet, there are expectations that the Q2 refinery turnaround season in Asia could mop up inventories, which have been rising in recent days. Factors also affecting the price uptick reportedly include the turnaround seasons in both Europe and Asia. Earlier reports likewise noted that Asian gasoline demand could remain supported with Indonesia set to lift about 10.6 million barrels of 88 RON and high octane gasoline component with 92 RON specifications, on a term basis, in March.

On the other hand, the Asian gasoil/diesel market was witnessing good demand from Africa, Middle East and Sri Lanka for 500 ppm and high sulfur gasoil. However, a lingering supply glut of 10 ppm sulfur gasoil was weighing on the overall gasoil market, with North Asia still exporting ample amounts of ultra-low sulfur diesel. Platts added that the lackluster demand from Australia, the key outlet for ultralow sulfur diesel in Asia, cannot absorb abundance of supply, which had been pouring in from South Korea and Japan.

Overall, Dubai crude along with MOPS diesel decreased by about US$0.55/bbl and US$1.10/bbl, respectively. MOPS gasoline increased by US$0.10/bbl.

FOREX:  Week-on-week Peso per US dollar depreciated by P0.01 to P44.63, from P44.62 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 4 March 20014, oil companies implemented a decrease of P0.30/liter for both diesel and kerosene. There was no adjustment effected on gasoline.

LPG price decreased as well by P5.35/kg on 1 March 2014 due to a decrease in LPG Contract Price this month by US$104.50/MT to US$865.50/MT, from US$907/MT in February.

Year-to-date price adjustment for gasoline remained at a net increase of P0.20/liter, while diesel has a net decrease of P0.45/liter. Year-to-date decrease in LPG totalled P14.46/kg.

* 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