WORLD OIL PRICES (July 7-11, 2014 trading days)

Crude oil price has been falling steadily for more than a week partly because worries about disruptions of the oil supply from Iraq have subsided, and Libyan oil is returning to the global market. Analysts believed that the rally of the previous weeks was all due to anticipation that there was going to be supply disruptions, but the market is currently starting to stabilize.

As regards Libya, political strife has shut ports and disrupted production in the country, but agreements with local militias are now expected to open two ports. A major field was said to have restarted production last Tuesday. Thus, crude shipments could ramp up quickly because oil has accumulated in tanks at the closed ports.

Oil prices however gained some support from strong U.S. stocks. While US government data showed that U.S. oil supplies fell 2.4 million barrels last week, said decline is lower than analysts’ expected decline of 3 million barrel. The department had revised up its estimate for U.S. crude production for this year and next year.

On Asian product’s market, Platts noted that gasoline remained firm, supported by regional refinery issues that have spurred buying during Asia's peak gasoline demand season. Malaysia's Petronas may need to import around 200,000 barrels of 95 RON gasoline, after a technical problem affected one of the units at its Melaka refinery. Demand from India and Indonesia is also likely to remain strong.

For gasoil/diesel, the Asian market remained weak on ample stockpiles, compounded by soft import demand in the region, Platts noted as of Friday. Reflective of the overhang in regional supply, onshore stockpiles of middle distillates in Singapore remained well above the 11 million-barrel mark, despite recent drawdowns. Since the week ended April 30, inventory levels reportedly remained stubbornly above 11 million barrels.

Overall, Dubai crude decreased week-on-week by about US$2.20 /bbl. Both MOPS gasoline and diesel decreased as well by about US$2.40/bbl.

FOREX: Peso per US dollar rate appreciated week-on-week by P 0.20 to P43.41, from P43.61 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 today, 15 July 2014, most of the oil companies implemented a decrease of P0.95/liter for gasoline, diesel and kerosene.

Year-to-date total adjustments stand now at a net increase of P0.80/liter for gasoline and a net decrease of P2.70/liter for diesel. LPG remained at a net decrease of 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