WORLD OIL PRICES (December 29, 2014 - Jan 2, 2015 trading days)

Dubai and WTI crude prices dropped to fresh 5-1/2-year lows around US$53/bbl, along with Brent crude at US$56/bbl, as worries about surplus of global supplies amid weak demand continued to drag on oil markets.

OPEC's decision in November to maintain output had earlier accelerated oil's losses, while record-high Russian production and the highest Iraqi exports since 1980 added to the concerns about oversupply. The crude oil benchmarks, Dubai, Brent and West Texas Intermediate, have now lost more than half of their value from peaks hit in mid-2014.

Analysts also stressed that the recently disclosed lackluster economic data from the United States further fuelled worries about the state of the global economy and the strength of oil demand. Moreover, the weak euro may likewise contribute to further oil price losses as it reduces the purchasing power of euro holders for dollar-denominated oil.

On the supply side, while turmoil in Libya reportedly dented OPEC output in December to a six-month low, forecasts by oil analysts still point to a surplus.

In Asia, Platts noted that East Asian gasoline market continue to be pressured by softer regional demand, which has left supplies growing gradually. Meanwhile, the Asian gasoil/diesel market remained fairly lackluster, with demand slow to emerge from the region. Spot supply for January and early February is seen out of India and the UAE.

Overall, Dubai crude decreased week-on-week by US$2.84/bbl. Similarly, both MOPS gasoline and diesel decreased by about US$4.00 and US$3.20/bbl, respectively.

FOREX: Peso per US dollar rate depreciated by P0.11 to P44.74, from P44.63 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< /a>

DOMESTIC OIL PRICES

Effective 05 January, most of the oil companies implemented a decrease of P0.95 for gasoline, P0.80 for diesel and P1.25 for kerosene. These are the first price movement in 2015.

Likewise, LPG prices decreased by P5.50/kg effective 2 January 2015 as its Contract Price dropped by US$107.50/MT to US$456.50/MT this month, from US$564/MT in December 2014.

The total net adjustments for 2014 stood at a net decrease of P13.29 for gasoline, P15.03 for diesel and P28.52 for LPG.

* 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