WORLD OIL PRICES (September 29-October 3, 2014 trading days)

Crude oil prices continued their decline, with the American benchmark-WTI posting around $90/bbl Thursday, the lowest in nine months. Other benchmarks, Brent and Dubai followed, both posting their lowest levels since June 2012 at around US$92/bbl.

Crude prices have been under pressure in recent months, brought about by weaker-than-anticipated growth in China and Europe, abundant supply and growing inventories. However, the sudden drop of more than US$2 on 2 October 2014 was seen as a response to Saudi Arabia’s pronouncement to cut prices by about $1 a barrel to Asia, the crucial growth market for the Persian Gulf producers, as well as by 40 cents a barrel to the United States. Analysts believe that Saudi’s move is the clearest sign yet that the world's largest exporter is trying to compete for crude market share, pushing prices sharply lower.

Further, analysts opined that a well-supplied oil market, helped by increased North American production and softer global demand as Europe's economy falters and Chinese demand growth slows, has created a supply imbalance that has driven prices sharply lower. The Saudi move was counter to expectations that it would further cut its 9.8 million barrel-a-day production to bring back oil prices.

Meanwhile for the products market in Asia, Platts noted that strong market fundamentals have been driving the Asian gasoline for most in September, and may remain so if Indonesia, one of the biggest importers in the region, continues its big imports. Indonesia's higher gasoline import requirements were attributed to lower production from Pertamina's refineries due to turnarounds.

On the other hand, weak sentiment in the Asian gasoil/diesel market reportedly continued, with some pointing to slowing regional economies, particularly China. Yet some market observers felt the weakness was more due to the abundance of supply.

Overall, Dubai crude decreased week-on-week by about a dollar per barrel. MOPS diesel and gasoline decreased as well by about US$1.40 and US$1.10 per barrel, respectively.

FOREX: Peso per US dollar rate depreciated week-on-week by P0.29 to P44.87, from P44.58 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 07 October 2014, oil companies implemented a decrease of P0.15 for gasoline and P0.35 for diesel and kerosene.

Year-to-date total adjustment for gasoline and diesel stood at a net decrease of P2.56/liter and P4.83/liter, respectively.

For LPG, players rolled back their prices by P0.50/kg (VAT inclusive) or P5.50/11-kg cylinder effective October 2, 2014. With the said price rollback, its total adjustment for the year stands at a net decrease of P20.32/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