WORLD OIL PRICES  (June 15-19, 2015 trading days)) 

Crude oil prices are generally lower this week than in previous week. A sharp decline on Friday last week due to reports of ample supplies continued up to this week despite reports of the seventh weekly drop in US crude reserves and ahead of decision by the Federal Reserve on the interest rate.

The week’s price movement was said to have been weighed by the following reports:

• Greek debt crisis. The news raised concerns of weaker demand for petroleum in Europe;

• Peace talks. US started talks to try to bring peace to Yemen, where OPEC heavyweight Saudi Arabia is involved in a civil war;

  Surplus supply. OPEC produced 31.2 mil b/d in May 2015, more than the group’s agreed level of 30 mil b/d. Output is also increasing in Libya, where production has been constrained by civil war. A deal on Iran's nuclear programme could lead to sanctions being lifted, allowing Tehran to increase exports;

  Tropical storm warning. The US National Hurricane Center (NHC) issued warning that tropical storm Carlos may hit the coast of the oil-producing state of Texas;

  US-DOE inventories. U.S. commercial crude inventories sank by 2.7 million barrels in the week ending June 12, greater than market expectations of a 1.8-million decline. “The weekly (DoE) oil inventories report failed to provide any upside momentum as crude oil stocks at the key location of Cushing, Oklahoma, rose 112,000 (barrels) versus expectations of a 837,000 drop.

As for oil products in Asian market, gasoline was relatively stable on resilient regional demand. Fundamentals were still being supported by spot demand from India and Southeast Asia.

Meanwhile, the Asian gasoil market remained bearish with expectations that the outlook for July will stay bleak, Platts noted. There is ample supply in the market while demand from Vietnam and Sri Lanka remained steady. Yet demand from West Africa for 500 ppm gasoil was also seen.

Overall, Dubai crude price decreased week-on-week by about US$0.70/bbl. Likewise, MOPS gasoline and diesel decreased by about US$0.40 and US$1.00 pe barrel, respectively.

FOREX:   Peso/US$ rate depreciated by P0.09 to P45.12, from P45.03 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

The oil companies implemented a P0.25/liter decrease in diesel effective today, 23 June 2015. There was no adjustment effected on the price of gasoline (Table II).

With the price decrease, the total net increase to-date for diesel was reduced to P0.81/liter. Gasoline and LPG remained at net increase of P5.69/liter and a net decrease of P6.60/kg, respectively.

* RON 95

For more information, call the

Department of Energy:
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LPG: 840-2130
Fuels: 840-5669
SMS: (0915) 4469421
Email:  oilmonitor@doe.gov.ph
Website: http://www.doe.gov.ph