WORLD OIL PRICES (January 26-30, 2015 trading days)

Crude prices, particularly WTI oil plunged later during the reference week, ending below the $45-mark after an official weekly oil report from the Energy Information Administration showed crude oil stockpiles in the U.S. to have surged more than expected in the week ending January 23, with inventories at an 80-year high.

The U.S. Energy Information Administration showed U.S. crude oil inventories to have jumped to almost 9 million barrels, taking stockpiles to nearly 407 million, the highest level since the government began keeping such records in 1982. Analysts expected an increase of almost 4 million barrels.

On the contrary, US gasoline stocks dropped by 2.6 million barrels in the previous week, while analysts anticipated an increase of 0.8 million barrels. Inventories of distillate, including heating fuel, also dropped 3.9 million barrels with analysts expecting a decline of 0.6 million barrels.

In Asian gasoline market, industry participants noted last Friday that scheduled refinery turnaround in Asia in the next two months would help ease the current oversupply; yet potential upsides could be limited by new capacity coming online at net gasoline importers in the Middle East.

As for the Asian gasoil market, Platts also reported that the same remained under pressure, as demand failed to pick up while supplies continued to build. Bearish fundamentals prevail as a persistent glut in supply led sellers to chase after buyers. Both medium sulfur 500 ppm and ultra-low sulfur 10 ppm gasoil grades were under pressure, with more gasoil exports from North Asia. Platts further noted that Asian refineries were heard to be operating at high rates because of good prompt margins, inundating the market with supplies in the process.

Overall, Dubai crude increased week-on-week by US$0.06 /bbl. MOPS gasoline dropped minimally by US$0.03/bbl; diesel also dropped by US$0.32/bbl.

FOREX: Peso per US dollar rate appreciated by P0.31 to P44.11, from P44.42 in previous week.

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

DOMESTIC OIL PRICES

With the movements in the MOPS averages over the past two weeks, majority of the oil companies implemented a price rollback of P0.30/liter for diesel effective 03 February 2015. No adjustments were made for gasoline and kerosene.

On the other hand, LPG prices increased by P0.70/kg effective 01 February 2015 as its Contract Price increased by US$14.50/MT to US$471.00/MT this month, from US$456.50/MT in January.

The total adjustments now stand at net decrease of P3.60/l for gasoline, P4.16/l for diesel and P4.80/kg for LPG.

* 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: http://www.doe.gov.ph