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

Oil prices spiked last week on fears of Russia's military incursion into the Crimean Peninsula that might lead to U.S. and European sanctions on Russia, one of the world's largest energy suppliers. However, fresh report of a further weakening in the world’s second-largest economy (China) fueled worries on weakening oil demand; thus, set oil prices lower this week.

Also weighing prices down was the eighth consecutive week of rising U.S. stocks of crude oil, which increased by 6.2 million barrels last week, as disclosed by the Energy Information Administration report. That was far higher than analysts' expectations of a rise of 2.3 million barrels.

In Asia, Platts noted of mixed gasoline market sentiment due to differing opinions from the industry on the strength of regional demand. While some traders pointed to strong demand for spot cargoes of 92 RON in April from Indonesia's state-owned Pertamina, others saw overall demand as weaker compared with March from the region's largest buyer. Vietnam's Saigon Petro and Petrolimex are however seen to have higher import demand among the country’s oil companies. Reportedly, Vietnam buying is expected due to the turnaround of the country’s sole refinery at Dung Quat, which will be shut from May 19 to July 9 for a scheduled full maintenance.

On the other hand, the Asian gasoil/diesel market continued on its downward trajectory as weakness in the European and Asian market and surplus in the 10 ppm sulfur gasoil combined to pressure the market lower. This second-quarter, refinery maintenance may somehow lend some support to balance the market. Japan, which typically exports 10-15 MR-sized gasoil cargoes per month, is expected to export less 10 ppm sulphur gasoil in April than it did in March due to scheduled maintenance and rebounding domestic demand.

Dubai crude decreased week-on-week by US$1.30/bbl. MOPS diesel and gasoline decreased by about US$2/bbl and US$0.80/bbl, respectively.

FOREX:  Week-on-week value of Peso per US dollar appreciated by P0.10 to P44.57, from P44.68 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 March 2013, the oil companies implemented a decrease in the prices of gasoline by P0.30/liter, diesel by P0.65/liter and kerosene by P0.70/liter.

Year-to-date, gasoline so far has zero net adjustments (total decrease offsets total increase). Diesel has a total net decrease of P1.30/liter.

* 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