WORLD OIL PRICES (October 20-24, 2014 trading days)

Crude oil prices generally maintained their downward trend, supported by the ongoing large builds in crude oil inventories that dominate the world oil market.

WTI further dropped by about $2 a barrel to US$81/bbl in midweek but has recovered the following trading day along with Dubai crude. The price drop in WTI last Wednesday was said to be its lowest level since June 2012 following DOE-EIA’s report of US stockpiles that surged by 7.1 million barrels in the week ending October 17. The stockpile surge, which was more than double the market’s expectation reportedly confirm the slowdown in the US oil demand, resulting from the recent tepid US macroeconomic data.

Meanwhile the slight rebound in oil prices later in the week was due to encouraging Chinese and German economic data and reports of Saudi Arabia cutbacks. Reports disclosed that China's third-quarter economic growth rate came in at 7.3 percent, the slowest pace in five years, but was faster than many analysts had expected. Also, Markit's PMI for Germany rose to 54.3 in October from 54.1 in September, with manufacturing rising at the fastest pace in three months. The increase though was still well below the levels seen at the start of the year.

Specifically in Asia, Platts noted that the Asian gasoline market ended the week on a mixed note, as news of fewer exports from China amid robust apparent domestic demand coincided with rebounding stockpiles in Asia's main trading hub, Singapore. India and China exported the largest quantities of gasoline to the regional trading hub during the week ending 22 October. Meanwhile, Indonesia remained the largest gasoline importer from Singapore, though significantly lower than the previous week. Other major importers included Malaysia and Sri Lanka.

For gasoil/diesel, market in Asia remained awash with supply as of Friday, 22 October 2014, while demand from Southeast Asia was limited. Inventories of middle distillates in Singapore dipped from the previous week but overall volumes remained relatively high (Platts).

Overall, Dubai crude decreased week-on-week by about US$2.00/bbl. MOPS diesel and gasoline decreased as well by about US$0.50 and US$1.00 a barrel, respectively.

FOREX: Peso per US dollar rate had marginal appreciation by P0.03 to P44.83, from P44.80 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 28 October 2014, the oil companies implemented a decrease of P0.35/liter for gasoline and P0.20/liter for diesel.

Year-to-date total adjustment for diesel and gasoline amounts to a net decrease of P7.88 and P5.74 per 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