WORLD OIL PRICES  (June 1-5, 2015 trading days) 

The week’s trading started on a strong note, leading crude oil prices to rise by an average of about US$2 in the first two days, reportedly due to firm demand, in anticipation of the summer peak season in the U.S. and stronger U.S. dollar.  The US dollar rose half a percent against a basket of currencies, making commodities, such as oil, costly to other currency holders.  

Moreover, analysts believe that strong global fuel demand is supporting oil prices despite the glut.  In China, recent data disclosed of an almost 2 million new cars sold every month despite its economic slowdown.  Demand is also strong in Europe.  Goldman reported that European diesel demand growth reached 7.2 percent in the first quarter, or 420,000 bpd, compared with a year before, close to the highest rate seen in the past 30 years.  

By midweek however, reports that the Organization of the Petroleum Exporting Countries (OPEC) would not cut output at its meeting this week rolled oil prices lower.  As expected, OPEC meeting held last Friday left its output ceiling unchanged at 30 million barrels per day.  OPEC's dozen members pump a third of the world's crude oil.  

As regards Platts statement on oil products, Asia gasoline market had mixed fundamentals Friday, with the pre-Ramadan demand spike nearing an end while there was some support from fresh spot demand from India and the Middle East. "The market is now well-balanced," it noted.   

Meanwhile, fundamentals for the gasoil/diesel market were largely unchanged through the Friday, with supply remaining ample as refinery turnaround season comes to an end.  Traders were said to have mixed opinions with some saying the market remained well supplied amid lackluster demand within the region, while others stated the 500 ppm supply could be tightening, Platts added.  

Overall, Dubai crude price increased week-on-week by about a dollar.  MOPS diesel decreased by US$0.25/bbl, while gasoline increased by US$0.55/bbl.  

FOREX:  Peso per US dollar rate depreciated by P0.10 to P44.75, from P44.65 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, most oil companies implemented a P0.35/liter increase in gasoline. No price movements are implemented for diesel and kerosene.

Year-to-date total adjustments are now at increase for both gasoline and diesel by P4.64 and P0.91, respectively. LPG has net decrease of P6.60/kg

* 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