WORLD OIL PRICES (October 13-17, 2014 trading days)

Oil prices generally slipped lower during the trading week, with the sudden drop of about US$2 to US$4 a barrel in midweek, weighed by weak demand and ample supply in the market. However, prices marginally recovered by more than US$2 last Friday following the US-EIA’s report of strong gasoline demand data in the US and as investor sentiment strengthened in global equity markets.

Crude oil prices have been falling for quite some time due to poor end-market demand and rising inventory. Pockets of weakness in most global superpowers including the Euro zone, China and Japan have resulted in weaker activities and weighed on crude oil prices. A relatively stronger greenback and easing geo-political tensions also played roles in mounting further pressure on oil prices.

Analysts are of the opinion that while the falling prices may provide some relief to major oil importing countries in Asia, it will not offset the far wider effects of a slowing economy in China, and will not ease the chronic current account in India. It has also mixed effect on Japan’s economy.

Meanwhile for the products market in Asia, Platts noted of the recent crude-driven steep falls in spot gasoline prices that have spurred keen buying in the Singapore. Sources said the buying was due to traders perceiving outright prices as having fallen low enough, rather than reflective of an increase in fundamental end-user demand.

As for gasoil/diesel, the Asian market continued to be weighed down by heavy supplies from India while demand in the region was insufficient to absorb the supply glut. Stockpiles in Singapore continued their upward climb, Platts further noted.

Overall, Dubai crude decreased week-on-week by about US$5/bbl. MOPS diesel and gasoline decreased as well by about US$5/bbl and US$6/bbl, respectively.

FOREX: Peso per US dollar rate depreciated week-on-week by P0.12 to P44.83, from P44.71 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 18 October 2014, most of the oil companies implemented a decrease of P1.65/liter for gasoline and P1.30/liter for diesel and kerosene.

With the said price decrease, year-to-date total adjustment for diesel and gasoline amounts to a net decrease of P7.68/liter and P5.39/liter, respectively. LPG remains 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