WORLD OIL PRICES (September 15-19, 2014 trading days)

World oil prices were not deterred by the prospect of OPEC production cuts considering over-supply in Europe and Asia and a strong U.S. dollar.

Crude prices instead hit a two-year low point last Friday because of swelled supplies and dampening demand growth. U.S. benchmark West Texas Intermediate (WTI) has dropped 13 percent since mid-June to just over $92 per barrel, while Europe’s Brent and Asian Dubai was down by 15 percent to around $98 and $95 per barrel, respectively, in the same comparative period. Dubai level of $95/bbl was last seen in July 2012.

A report of US crude stockpiles, which showed a weekly surge of 3.7 million barrels, higher than the 1.2-million barrel decline expected by the market, also supported the recent price decline.

Meanwhile, Platts noted that Asian gasoline market is finding support going into October on Indonesia, the region's largest gasoline importer, seeking additional barrels amid lower output from domestic refineries.

On the other hand, Asian gasoil/diesel market remained saddled with supplies, while demand continued at a slow pace. Platts disclosed that refiners in India and Taiwan were heard to be holding high inventories in tank, as they tried to find buyers. These further add up to commercial onshore stockpiles of middle distillates in Singapore that climbed nearly 14% from the previous week to stand at 11.598 million barrels in the week ended September 17. Said higher stockpiles were due to higher imports of diesel.

Overall, Dubai crude decreased week-on-week by about US$1.70/bbl. MOPS diesel and gasoline decreased as well by about US$1.90 and US$0.60 per barrel, respectively.

FOREX: Peso per US dollar rate depreciated week-on-week by P0.45 to P44.25, from P43.80 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 23 September 2014, most of the oil companies implemented an increase of P0.15/L for gasoline, and a decrease of P0.20/L for diesel and P0.25/L for kerosene.

Year-to-date total adjustment of diesel and gasoline now stands at a net decrease of P4.30/L and P2.32/L, respectively.

* RON 95

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Email: oilmonitor@doe.gov.ph
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