WORLD OIL PRICES  (February 23-27, 2015 trading days) 

World oil prices fell sharply following the release of the US oil inventories report, which showed crude stockpiles hitting a fresh record high.  Prices however recovered to a week ago level, as it rose by about US$2 to US$4 by the end of the week.  For analysts, the market rally was due to traders focusing on the US-DoE report's positive elements for demand: falling gasoline and distillates stockpiles.  The market was back to weighing the basic fundamentals of global oversupply, made worse by high US production and weak demand in a slowing world economy.-AFP  

Moreover, analysts further stated that Brent losses later in the week were tempered by those expectations for improving global demand and geopolitical concerns about energy supplies from Libya and Russia.  US’ WTI crude losses more than wiped out Wednesday’s gains. -Reuters

In Platts news, the gasoline market in Singapore reflected strength, boosted by bullish gasoline data from the US, and ahead of the Asian refinery turnaround season.  The East/West gasoline spread continued to widen, making it attractive to move oil from Europe to Asia.  

Much of the recent upswings in gasoline in Asia, were exacerbated by refinery maintenance and ongoing strikes in the US.  Reflecting the bullish market in the US, Energy Information Administration data released late Wednesday showed that the country’s gasoline stocks shrunk 3.1 million barrels, to 240 million barrels in the week ended February 20, much greater than analyst’s expectation of 1-million- barrel drawdown.  Demand for the motor fuel in Asia and East Africa was still relatively steady to slower, as Indonesia – the region's largest gasoline importer saw steady imports in the first quarter of 2015.

Meanwhile, as Platts has stated, the Asian gasoil market remained fairly supported in the short term with demand from the West, as well as from Sri Lanka and Jordan.  Refinery maintenance scheduled from March onwards in North Asia is expected to tighten supply a little, but is unlikely to have a big impact if demand wanes.  Demand from Indonesia remained dull, amid high stockpiles.  Hence, State-owned Pertamina is not likely to buy gasoil from the spot market.        

Overall, Dubai crude decreased by about US$2.50/bbl.  MOPS gasoline also decreased by US$0.10/bbl; diesel by about US$1.60/bbl. 

FOREX:   Peso per US dollar rate appreciated by P0.10 to P44.24, from P44.34 in previous 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 3 March 2015, most of the oil companies implemented an increase of P0.15/liter in gasoline and a decrease of P0.40/liter and P0.80 in diesel and kerosene, respectively.

These price movements brought the year-to-date total adjustments to a net increase of P0.95/liter in gasoline and a net decrease of P0.35/liter in diesel.

* 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