WORLD OIL PRICES (March 17-21, 2014 trading days)

Oil prices generally fall over the week on waning concerns about the Crimean crisis, stronger US dollar and lesser excessive market speculations.

Oil price decline was also supported by the U.S. Federal Reserve's decision mid this week to further reduce its monthly stimulus program by $10 billion. Relatedly, new Fed Chief Janet Yellen hinted that the US Central Bank could raise interest rates earlier than expected, sending the dollar higher. The stronger greenback makes dollar-priced crude more expensive for buyers using weaker currencies, which tends to dampen demand and oil price levels.

However, a report of strengthening demand in the US balanced the market. The U.S. Energy Department recently disclosed that demand for gasoline increased by 1.5 percent over the four week period that ended March 14, compared with the same period last year. Similarly, the decline of 3.1 million barrels (more than three times the decline that analysts have expected) is another sign for greater demand.

In the Asian market, Platts noted that gasoline continued to face uncertainty going into April on unclear regional supply and demand behavior for the month. Indonesia, Asia's largest importer of gasoline, reportedly purchased one (1) million barrels of 92 RON for delivery over the first half of April, while volumes for the second half of April remain unclear. On the supply front, current inventory levels in Asia remained high, although fewer barrels is expected from India to the East in April due to a weak East-West arbitrage.

On the other hand, Platts noted of bearish sentiment in the Asian gasoil market early in the week due to heavy prompt supplies in the region, and slowing demand this month. But prices started to gain ground by the end of the week as the market saw tightening supply ahead of upcoming scheduled turnarounds at several regional refineries in the second quarter, hence overshadowed prevailing demand weakness.

Overall, Dubai crude decreased week-on-week by US$0.45/bbl. MOPS diesel and gasoline also
decreased by about US$0.78 and US$2.23 a barrel, respectively.

FOREX:  Week-on-week value of Peso per US dollar depreciated by P0.32 to P44.89, from P44.57 in the preceding 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 25 March 2014, most of the oil companies implemented a decrease of P0.45/liter for gasoline, P0.10/liter for kerosene and an increase of P0.10/liter for diesel.

Year-to-date total adjustments stand now at a net decrease of P1.20/liter for diesel and P0.45/liter for gasoline.

* 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