WORLD OIL PRICES  (30 March – 3 April 2015 trading days) 

Oil prices during the trading week were generally lower than week-ago; prices initially fell on Monday as traders focused on the deal between Iran and the six world powers.  Both parties tried to reach a deal on Tehran’s nuclear programme that could end Western sanctions, which could allow the country to ship more crude to the market. 

Market analysts opine that any relaxation of Iran oil sanctions may result to increased exports, thus adding to an already flooded market (now with around 1.5 million b/d in excess capacity) and further pressuring prices. The deadline for the deal was set on the eve of 31 March, but was extended over the time limit.  Reportedly, the Tuesday midnight deadline was scrapped after the U.S. insisted enough progress had been made to warrant extending the marathon talks (The China Post).

With this delay in the Iranian negotiations over the lifting of its sanctions, oil prices rebounded slightly for the first time in four days.  Adding to this is the less than expected weekly build-up in US inventories.  Reuters reported that U.S. crude rose 5 percent on Wednesday, and Brent about 4 percent, after U.S. government data showed the first weekly decline since January in crude production even as crude stocks hit new highs.  On Thursday, separate data from the U.S. government showed crude oil exports fell to 428,000 bpd in February compared with 491,000 bpd in January. 

As regards the products market in Asia, Platts reported that Asian gasoline sentiment continued to slide this week amid selling pressure.  However, regional demand remained healthy on higher Indonesian imports.  State-owned Pertamina is expected to import around 11 million barrels of gasoline in April, up 2.15 million barrels from March, due to increased demand for the higher RON gasoline, and the company’s rebuilding of inventory.    

Meanwhile, near-term outlook for the Asian gasoil market remained boosted by periodic demand from the region, along with tight supply stemming from refinery maintenance in Northeast Asia, Australia and India.  Further, the South Korean government plans to launch taxis running on gasoil from September in a move that is expected to boost gasoil demand, notwithstanding protests from LPG producers (under current rules, all taxis in the country are LPG-fed).    

Overall, Dubai crude price decreased week-on-week by US$0.38; MOPS gasoline and diesel also decreased by US$2.17 and US$0.37, respectively. 

FOREX: Peso per US dollar rate appreciated week-on-week by about P0.07 to P44.71, from P44.64 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

Beginning 07 April 2015, most of the oil companies implemented a rollback of P0.65/liter for gasoline, P0.15 for diesel and P0.25 for kerosene.  No adjustment was implemented for LPG.  

Given these adjustments in prices, the net increase of gasoline is lowered to P0.72/li; net decrease for diesel was increased to P1.19/li.  LPG remains at net decrease of P4.80/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