WORLD OIL PRICES (September 22-26, 2014 trading days)

Oil prices were generally on a downtrend in view of the following:

• Concern about slowing global demand
  • The euro zone, China and Japan, the largest economies after the US decelerated this year
  • The US is not importing as much oil as it used to mainly due to a surge in domestic production
  • Global growth is not expected to rebound this year, and this is a major factor behind oil prices remaining subdued.
• Higher supplies on recovery of Libyan output to around 925,000 barrels per day (bpd) from 200,000 bpd in June;
• eased in Asia as the US dollar strengthened while dealers sat on the sidelines due to a dearth of trading cues;
• Stable production from oil producers, such as Gulf Cooperation Council (GCC) members, more specifically Kuwait and the UAE, have contributed to output rise:
  • Kuwait increased crude output from 2.8 million barrels per day at the start of the year to 2.9 million in September, while signaling that it may rise to 3.0 million barrels per day next month
  • UAE's oil production also rose this year from 2.7 to 2.9 million barrels per day
  • Nigeria and Angola also accounted for nearly 60 percent of the increase in oil output in August
• Gasoline: Sentiment in the Asian gasoline market remained bullish, firmly supported by a recent spate of spot buy tenders that have tightened near-term supply. Apart from healthy demand in Asia, strength in the US gasoline markets is another reason for the firmer gasoline swap values in Asia;
• Diesel: Mixed outlooks given uncertainty about whether the Asia-to-Europe arbitrage would open in coming months. Platts noted that with ample cargoes coming from the Middle East, India and China, prices might become attractive enough to make the arbitrage window viable
  • Refining NZ plans to shut its 135,000 b/d refinery for about 11 days in early October due to a labor strike is said to provide some support to the market by limiting gasoil supplies in the region.

Overall, Dubai crude decreased week-on-week by about US$0.90/bbl. MOPS diesel and gasoline decreased as well by about US$1.60 and US$1.10 per barrel, respectively.

FOREX: Peso per US dollar rate depreciated week-on-week by P0.33 to P44.58, from P44.25 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 30 September 2014, most of the oil companies implemented a decrease of P0.20 diesel and P0.10 for gasoline and kerosene.

Year-to-date total adjustment for diesel and gasoline stood at a net decrease of P4.30 and P2.32, respectively.

* 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