WORLD OIL PRICES (June 30-July 4, 2014 trading days)

Crude oil prices slowly receded from previous week on easing concerns over possible oil supply disruptions from Iraq. Reports disclosed that violence in Iraq, where Islamist militants launched a lightning offensive in June, has not hampered crude supplies.

Price losses were further supported by the market prospects of more crude exports from Libya. On Wednesday, 2 July 2014, Libya's interim Prime Minister Abdullah al-Thani declared that authorities had regained control of export terminals blockaded by rebels.

However, price losses were capped by a bigger-than-expected drop in US crude inventories, which the US-DOE revealed to have dropped twice the amount predicted by analysts. A decline in inventories indicates greater US consumption and improving economic activity. Adding to this are the recent reports of upbeat manufacturing data in China, inferring of the country’s expanded activity in June, the fastest pace this year.

Specifically in Asia, Platts noted that Asian gasoline market remained bullish as the product continued to inch higher this week on fresh demand from India. There was also some prompt demand from Vietnam, Thailand and the Philippines that was tightening the overall demandsupply balance in the market at a time when Singapore onshore stockpiles of light distillates is at its lowest this year.

On the other hand, heavy supplies continued to weigh down the Asian gasoil/diesel market amid lackluster demand. Demand from Saudi Arabia and other countries in the Middle East also remain sluggish, and contributed to the weakness in the Asian markets.

Overall, week-on-week Dubai crude decreased by US$1.50/bbl. MOPS gasoline increased by about a dollar contrary to diesel, which decreased by about US$2.50/bbl.

FOREX: Week-on-week value of peso appreciated against the US dollar by P 0.23 to P43.61, from P43.84, 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 July 2014, most of the oil companies decreased their prices of diesel by P0.85/liter. There was no adjustment implemented for gasoline.

Year-to-date total adjustments stand at a net increase of P1.75/liter for gasoline and a net decrease of P1.75/liter for diesel. LPG remained at P16.87/kg.

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