WORLD OIL PRICES (Jul 28-Aug 01, 2014 trading days)

Brent crude oil prices were slightly up in the second day of the trading week (Tuesday), and U.S. West Texas Intermediate (WTI) was roughly unmoved as traders dismissed the possibility of increased sanctions against Russia. Commerzbank analysts noted that the oil market appears determined to ignore the numerous sources of geopolitical tension.

Later in the week however, oil prices fell as concerns eased that fresh Western sanctions on Russia over Ukraine would have an immediate impact on global crude supplies.  As Russia has yet to respond to the US and European Union sanctions with actions that could impact oil supplies, fears of disruption in crude stocks abated and helped to ease benchmark prices.

Friday’s reports also show that WTI reached its lowest point in more than two weeks as the U.S. dollar strengthened and global supplies remained ample.  The dollar has strengthened among a basket of other currencies due to unexpectedly strong U.S. economic indicators, including a better-than-expected reading of gross domestic product for the second quarter.  Reports also added that global supply remains ample, despite problems of getting Libyan oil to international buyers at a price they are willing to pay.

Oil prices ended the week further down, as forecasts for a supply glut in West African and European markets dragged Brent below $105 a barrel and US crude below $98 (Asian Dubai is also now at below $105/bbl).  Reportedly, prices were nearly 10 per cent off their highs of late June, and back to where they stood at the beginning of May.

As for the Asian gasoline market, Platts noted that the product remains under pressure from rising supply in the regional market and dip in demand going ahead. Asian market had been pressured down by a weak West of Suez market, where rising US stockpiles continue to weigh down the benchmark RBOB gasoline contracts.

The Asian gasoil market remained bearish as the market continued to be weighed down by supply pressure, against an absence of strong demand within Asia Pacific. Platts added that while some portions of demand emerged from Africa and Indonesia, the volume was said insufficient to absorb the surplus in the region.  Buying interest may have emerged from Vietnam and Africa, but the requirements were largely steady month on month.

Overall, Dubai crude decreased week-on-week by about US$0.15 a barrel, same with MOPS gasoline by about US$3.15/bbl.  Meanwhile, MOPS diesel increased by US$0.80/bbl.

FOREX: Peso per US dollar rate depreciated week-on-week by P0.13 to P43.48, from P43.35 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 04 August 2014, most of the oil companies implemented a rollback in gasoline price by P0.75/li and increase of P0.35/li for diesel.  Household LPG was also effected a P2.25/kg (VAT-inclusive) rollback on 01 August 2014.

Year-to-date total adjustment for gasoline stood at a net decrease of P1.49/li and diesel at P2.60/li.

* 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