WORLD OIL PRICES (February 10-14, 2014 trading days)

Oil prices rose over the week in view of the following:

• Health of the US economy. World oil rose on hopes that new US Federal Reserve Chief Janet Yellen will indicate that she is sticking by the bank's easy-money stimulus; dealers note that the health of the US economy is a key influence on oil prices, with the US being the world's biggest consumer of crude.

• Positive economic outlook for the US. The unemployment rate in the month dropped slightly to 6.6 percent from 6.7 percent in the preceding month, the lowest rate since the financial crisis of 2008.  Investors found encouraging signs that job creation grew in key sectors such as manufacturing and construction and believed the world's largest economy is still strengthening overall.

• China's record crude oil imports. Oil prices were boosted by data showing that China's imports of crude rose to 6.6 million barrels a day in January, up nearly 12 percent from the same month last year and the highest figure on record.

• OPEC output in January. The OPEC said that based on upward revisions for OECD Americas and Europe, global oil consumption should rise by 1.09 million barrels a day, an increase of 45,000 barrels a day from the previous prediction.

• Continued bad weather in the US.  Increased demand for heating oil due to frigid weather in the US also lifted crude prices.  Supplies of distillate fuel, including heating oil and diesel, decreased by 731,000 – 113.1 million barrels last week.

• Increased OPEC output.  OPEC revealed its members’ output increased last month, as exports partially resumed from Libya.

In the Asian Market, Platts noted that gasoline price rally was driven by strength in the US and European markets. Views on the regional market was largely mixed, with some traders saying the market is well supplied while others cite tightening fundamentals ahead of the refinery maintenance as the reason behind higher prices in recently concluded deals.  Meanwhile, demand remains robust with steady volumes required by Indonesia (Pertamina) and Vietnam (Petrolimex).

For gasoil/diesel, trade on February-loading gasoil was largely finished, as the market looked ahead to March.  Further, Indian Oil Corp has deferred a scheduled partial shutdown at its 300,000 b/d Panipat refinery that was due in March.  With the expected surge in domestic diesel and gasoline consumption ahead of the elections (which will coincide with India’s typical peak fuel demand season), maintenance works are unlikely to be pursued.

Overall, Dubai crude increased by US$2.60/bbl.  MOPS diesel also increased by more than US$2/bbl, while MOPS gasoline increased by more than US$4/bbl.

FOREX:  Week-on-week value of Peso against the US dollar appreciated by P0.37 to P44.91, from P45.28 in previous week.

Other recommended reference sites:
(1) https://www.aip.com.au/pricing (2) https://www.med.govt.nz/ers/oil_pet/prices/prices.html

DOMESTIC OIL PRICES

Effective 18 February 2014, most of the oil companies implemented an increase in the prices of gasoline and diesel by P1.00/liter and P0.40/liter, respectively.

Year-to-date price adjustments stand at a net increase of P0.20/liter for gasoline and a net decrease of P0.40/liter for diesel.  LPG remained with total decrease of P9.11/kg.

* RON 95

For more information, call the

Department of Energy:
Pricing: 840-2187
LPG: 840-2130
Fuels: 840-5669
SMS: (0915) 4469421
Email: [email protected]
Website: https://www.doe.gov.ph