WORLD OIL PRICES (March 31-April 4, 2014 trading days)

World crude prices generally softened in the first four trading days due to the following reports:

•  Growth in China's economy for the first quarter was below the government's annual growth target of 7.5 percent;
• Commencement of Iraq’s production from the large West Qurna-2 field, starting at 120,000 b/d but expected to rise to 420,000 b/d by year end;
• Withdrawal of some of Russia’s troops in the Ukrainian border; and
• Hopes that Libya oil would soon be back online.

By the end of the week, prices picked-up by about US$2/bbl after a report of strong jobs growth for March in the US. However, average prices for the week remained lower than in previous week.

In the Asian market, Platts noted that gasoline market sentiments were mixed on uncertainties over regional demand. Import requirements from Indonesia, Asia’s biggest gasoline importer, remain unclear until next week. Meanwhile, Asia could see less cargo from India as more supply is directed to the Mediterranean market - a structural supplier to the Middle East. Lower output from refineries in Mediterranean region and a higher pull for cargoes from North African caused additional tightness amid refinery maintenance season in Asia.

Platts further noted of upbeat market for Asian gasoil/diesel amid projections of supply further tightening as more refineries idle units are for scheduled maintenance. About 2.13 million b/d or more of crude distillation capacity will be taken offline in May, the peak of scheduled maintenance in Asia. In addition, the summer season looming next month in the Middle East is expected to raise imports of 500 ppm sulfur gasoil from Saudi Aramco to meet their local demand for power generation for airconditioning use.

Overall, Dubai crude decreased week-on-week by US$0.90/bbl. MOPS diesel and gasoline decreased as well by about US$0.60/bbl and US$0.50/bbl, respectively.

FOREX:  Week-on-week value of Peso appreciated against the US dollar by P0.18 to P44.87, from P45.05 in the preceding 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 8 April 2014, most of the oil companies rolled back their prices by P0.35/liter for diesel, P0.15/liter for gasoline and P0.30/liter for kerosene.

Year-to-date total adjustments for diesel and gasoline stand at a net decrease of P1.05 and P0.50 per liter, respectively.

LPG has a total net decrease of P16.66/kg or P183.26/11kg.

* 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