WORLD OIL PRICES (March 2-6, 2015 trading days)

Crude oil prices sustained its uptrend until last Monday, posting about a dollar higher than the Friday levels, owing to reports of supply concerns in Iran and Iraq. Nonetheless, news of soaring US dollar, US’ eight straight weeks of record high crude inventories, and the US’ pursuit of an Iranian nuclear deal somehow offset the earlier gain. Over the rest of the week however, the trend was again distracted as prices seesawed given the following overwhelmingly bearish factors:

•  Libya's declaration of force majeure. Libya’s National Oil Co declared force majeure Wednesday at 11 oil fields after attacks by Islamists, a legal step protecting it from liability if it cannot fullfil contracts for reasons beyond its control;

•  US’ pursuit of a nuclear agreement with Tehran. This could end sanctions against Iran and bring more oil from the OPEC member into an already flooded market. But Iran stressed that it opposed a timeline for a freeze on nuclear activities. Tehran's ambassador to the International Atomic Energy Agency, Reza Najafi, said Wednesday that no deal had been reached on the duration of any possible agreement covering Iran's nuclear program.

•  Federal Reserve’s anticipation on capital expenditure for US oil and gas producers. Federal Reserve's Beige Book report anticipates cuts in capital expenditure for oil and gas producers in certain U.S. districts. Lower oil exploration budgets could mean less supply in the future; thus would indicate higher oil prices.

On Platts news about the Asian market, gasoline reportedly firmed over the trading week due partly to some profit taking. Modest uptick in spot requirements owing to refinery issues in the US and the onset of the refinery turnaround season in the region also added to the price firm up. Meanwhile, Singapore's latest data revealed that commercial stockpiles of light distillates in landed storage around the island slipped by 0.24 million barrels during the week of February 26-March 4.

On the other hand, the Far East gasoil market is said to continually be buoyed in the near term by a supply shortage of 500 ppm gasoil, primarily because of refinery maintenance in Asia and robust demand for the medium-sulfur grade from Vietnam. Supplies of ultra-low sulfur diesel and high sulfur gasoil in Asia were seen to be healthier compared to 500 ppm due to less outlets. Moreover, an outflow of arbitrage barrels to the west reportedly cleared up some over-supply in Asia and the Middle East, which in turn led to a drawdown in inventories.

Overall, Dubai crude increased by US$1.50/bbl. MOPS gasoline and diesel also increased by US$3.30 and US$1.70 per barrel, respectively.

FOREX:    Peso per US dollar rate appreciated by P0.07 to P44.12, from P44.18 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

Effective today, 10 March 2015, most of the oil companies implemented a price increase of P0.95/liter in gasoline and P0.55/liter in diesel.    

Said price increase raised the year-to-date adjustment to a net increase of P1.90 in gasoline and P0.20 in diesel. LPG remained at net decrease of P4.80/kg
Price

* 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