WORLD OIL PRICES (October 27-31, 2014 trading days)

Crude oil prices increased by about one dollar versus averages last week following reports of encouraging Chinese and German economic data. It further boosted as traders anticipated the Federal Reserve to keep U.S. interest rates low. The US Federal Reserve was widely expected to end its bond-buying stimulus program.

Prices also gained support on smaller-than-expected increase in US crude inventories. The US Department of Energy (DoE) reported Wednesday that the country’s crude inventories rose by 2.1 million barrels in the week ended October 24, less than analysts' consensus estimate of 3.1 million barrels. Crude inventory growth slowed after a 7.1 million barrel gain in the previous week. The DoE report also disclosed stronger-than-expected declines in inventories of gasoline and distillates, which include diesel and heating fuel.

Federal Reserve’s decision of discontinued bond buying program however strengthened the US dollar, adding oversupply concerns already weighing on the market. This caused oil prices to slip anew last Friday. A stronger greenback makes dollar-priced commodities such as oil more expensive for buyers using other currencies.

With regards to the product’s market in Asia, Platts noted that gasoline market was in mixed trade over the week, as sustained buying interest in Indonesia was tempered by sluggish demand elsewhere in the region. Indonesian's November gasoline imports are estimated at a high 11.5 million barrels, steady from October, as domestic refinery outages continue. The sustained volume imported by Indonesia, along with demand from Malaysia and the Middle East were somewhat replaced by exports by Taiwan and China, the biggest sources of gasoline last week at 159,234 and 113,703 metric tons, respectively.

On the other hand, firmer gasoil/diesel market was reinforced by greater demand in Europe and expectations of easing stockpiles within Asia and Europe as well. Africa were said to be drawing more barrels from Europe, reducing the price spread between future and spot prices. Greater activities for Asian gasoil/diesel market will reduce vast volume in the region, and may cause prices to slowly recover.

Overall, Dubai crude increased week-on-week by US$0.60/bbl. Likewise, MOPS gasoline and diesel increased as well by about US$0.70 and US$0.75 a barrel. These were the first weekly price build-up after about two months of consecutive weekly decreases.

FOREX: Peso per US dollar rate was almost the same as the previous week at P44.81.

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 4 November 2014, most oil companies implemented a price increase for both gasoline and diesel by P0.20/liter and P0.25/liter, respectively.

On the contrary, LPG companies implemented a price roll back of P7.00/kg or P70.00/11kg-cylinder effective November 1, 2014. The price adjustment was due to the decrease in LPG Contract Price (CP) by US$153/MT to US$603 this month, from US$756/MT in October.

With the price uptick in gasoline and diesel, year-to-date total adjustment for said products stands now at a net decrease of P5.54/liter and P7.63/liter, respectively. LPG’s net decrease expanded to P27.32/kg.

* 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