WORLD OIL PRICES (May 19-23, 2014 trading days)

Crude prices rose during the week in Asian trade, supported by worries on Libya's oil supply disruption and an unexpected draw in U.S. crude oil inventory, according to industry data.

While profit taking was said to have led to a slight price drop mid this week, the declines were capped by worries on low oil output from Libya and positive economic data in China and the United States. Positive reports from China and US were specifically stated as follows:

• China's factory sector turned in its best performance in five months in May, though overall manufacturing growth still contracted slightly on a perception that the outlook remains murky.
• U.S. home resale rose in April and the supply of properties on the market hitting the highest level in nearly two years are hopeful signs for the stalled housing market recovery.

Moreover, the oil market has also been supported by the conflict in Ukraine - a main gas supply route for Europe from Russia. As of Sunday, 25 May 2014, traders were closely watching the result of the Presidential election in Ukraine. Petro Poroshenko reportedly claimed a resounding victory in the country's key presidential election. He immediately vowed to end a bloody pro-Russian uprising that prevented voting across swathes of the separatist east. The polls were triggered after former pro-Russian leader Viktor Yanukovych was ousted in February.

Meanwhile, Platts noted that views on the Asian and Middle Eastern gasoline markets were mixed last Friday, with a stronger West of Suez market and expectations of incremental spot demand in Asia lending support. But the absence of Asia's single-largest importer, Indonesia's Pertamina, from the June spot market to date, and ample supply were seen as putting some downward pressure. Platts further noted that even as inventory levels of gasoline, reformate, and naphtha in Singapore fell for the second consecutive week, supply was sufficient to meet current demand.

Conversely, heavy supplies and thin demand within the Asia Pacific region continued to weigh on the Asian gasoil/diesel market. According to Platts, demand from Indonesia, Vietnam and the Philippines was thin, while supplies poured into Singapore amid lack of outlets.

Overall, Dubai crude increased further this week by more than a dollar. Similarly, MOPS gasoline increased as well by about US$1.90/bbl together with diesel by about US$0.35/bbl.

FOREX: Week-on-week value of Peso depreciated against the US dollar by P0.01 to P43.70, from P43.71, 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 27 May 2014, most of the oil companies implemented an increase of P0.55/liter for gasoline and P0.20 for diesel, which also reflected an increase in freight.

With the said price adjustments, gasoline stands now at a year-to-date net increase of P0.30/liter while diesel has a 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: oilmonitor@doe.gov.ph
Website: https://www.doe.gov.ph