WORLD OIL PRICES (September 1-5, 2014 trading days)

Crude oil prices were on mixed trade over the week on reports of upbeat U.S. data and signs of slowing economic growth in China and Europe, along with news of high inventories and weak demand that created a glut of crude in the Atlantic basin and Asia.

Furthermore, following are recent developments affecting the oil market:

• Euro fell to a near 14-month low against the dollar Thursday after the European Central Bank unexpectedly cut its main refinancing and deposit rates in a bid to stimulate an economic recovery in the Eurozone. A stronger dollar makes commodities such as crude oil more expensive to investors holding other currencies;
• Hopes that peace talks in Ukraine may help the demand outlook in Europe;
• U.S. crude supplies fell by 905,000 barrels in the week ended Aug. 29, less than the 1.1-million-barrel drop that analysts had expected;
• Gasoline stockpiles fell by 2.3 million barrels to 210 million barrels, the lowest level since Nov. 15, 2013. Analysts had predicted a 1.4 million-barrel drop;
• Geopolitical tension in key oil producing regions such as the Middle East, North Africa and Russia continued to represent potential support for oil prices.

In Asia, Platts noted of little change in gasoline market, with fundamentals tracking developments in the US and Europe and prompt regional demand. Stocks of light distillates in regional trading hub Singapore reportedly fell by 1.7% week on week to 11.002 million barrels, trade data released by government agency IE Singapore.

Platts also underscored that gasoil/diesel markets in Asia and Middle East were pressured by ample supply, which could likely continue surpassing demand into the month of October. Heavy exports from Asian refineries added to regional stockpiles, while limited arbitrage opportunities stemmed outflows to the West. Meanwhile, Japan’s gasoil exports reportedly came in at 1.37 million barrels in the week to August 30, up 61.6% from the previous week. Domestic demand in the Middle East waned as cooler weather reduced the use of air conditioning and power generation.

Overall, Dubai crude decreased week-on-week by US$0.70/bbl. MOPS diesel decreased as well by almost P0.60/bbl, contrary to MOPS gasoline with an increase of about a US$0.30 on the same period.

Overall, Dubai crude increased week-on-week by about US$0.70/bbl. Both MOPS gasoline and diesel also increased by about a US$2.40 and US$0.80 per barrel, respectively.

FOREX: Peso per US dollar rate appreciated week-on-week by P0.09 to P43.61, from P43.70 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, 9 September, most oil companies implemented a decrease of P0.25/liter for diesel and P0.10/liter for kerosene. There was no price movement effected for gasoline.

Year-to-date total adjustment for diesel stood back to a net decrease of P3.40/liter, while that of gasoline remained at a net decrease of P2.18/liter.

* 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