WORLD OIL PRICES (July 14-18, 2014 trading days)

Crude oil prices continued its downward trend since early this month as Iraqi insurgents failed to advance and oil exports remained unaffected. Libya's comeback to the oil market also pushed down prices, though some experts remained cautious.

While there was slight uptick due to report of a big drop on US crude inventories and higher refinery activity levels, analysts believed that oil prices will likely be dictated above all by the development of Libyan oil supply. However, it added that it may take some weeks before the oil terminals are fully operational again, so oil supply is unlikely to increase noticeably in the short term.

Announcement of new sanctions by Washington against Russia over the conflict in Ukraine were also seen to give some support to crude prices. Nonetheless, their impact is not expected to be immediately significant.

On Asian products market, Platts noted that gasoline remains under pressure after a sharp correction in the product's cracks over the past two days. Buying interest is so far to remain thin through August because of a steeply backwardated market structure. However, despite the selling pressure, Platts noted that inventories still remain low, keeping the market sensitive to any supply disruption or unexpected demand.

As regards gasoil/diesel, fundamentals in the Asian gasoil market were broadly unchanged, as demand in the region continued to struggle to keep pace with supply. Market sources reportedly attributed the supply overhang and rebound in stock levels in Singapore to ample exports from the rest of Asia, and slow demand in the region. Moreover, Platts noted the improved supply-demand fundamentals in the Middle Eastern gasoil market with the onset of the warm summer season in the region. Demand from East Africa somehow also added uptick in Asian market sentiment.

Overall, Dubai crude decreased week-on-week by US$1.40/bbl. Both MOPS gasoline and diesel decreased as well by about US$1.85 and US$0.50 to a barrel, respectively.

FOREX: Peso per US dollar rate depreciated week-on-week by P 0.16 to P43.57, from P43.41 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 22 July 2014, most of the oil companies implemented a decrease of P0.30-P0.35 per liter for gasoline and increase of P0.10 for kerosene. No adjustment was effected for diesel.

Year-to-date total adjustment for gasoline stands at a net increase of P0.50/liter while diesel remained at a net decrease of P2.70/liter for diesel.

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