Oil Monitor 2010

8/3/2019 Oil Monitor 2010

1/50

OIL MONITORAs of 28 December 2010

WORLD OIL PRICES (For December 20-24, 2010 trading days)

Week-on-week Dubai crude rose by US$1.30/bbl. Likewise, MOPS gasoline, diesel andkerosene increased by US$2.15/bbl, US$1.60/bbl, US$1.75/bbl, respectively, comparedto its averages in the previous week.

The following remain the reasons behind the sharp increases in oil prices. Pricesactually started to spike since early this month:

Concerns about the ongoing colder-than-normal weather especially in the US

and Europe, driving demand for heating, which includes diesel; Optimism of investors about the world economic improvement. Bloomberg

reported China, India, Brazil and Russia leading the global recovery, fanning

demand for fuel;

Consistent drop in the weekly inventories of crude in the US. As of 15 Dec2010, the countrys crude supplies declined by 5.3 million barrels from theweek before. That was more than twice the decline of 2.4 million barrelsexpected by Platts analysts;

Problem at a refinery unit in the Caribbean help keep the prices of gasolinehigher. It has been shut down several weeks ago, and repairs may takeanother week, according to Cameron Hanover energy consulting agency;

Markets are also closely monitoring tensions in the Korean Peninsula;

As regards the effect on the declines in crude inventory, a top planning body in China

however, stated that the drop in US crude supplies appeared to be due to year-endinventory adjustments rather than significantly higher demand or a shortage ofimports. While shrinking oil inventories could help support higher prices, he noted thattotal supplies remain more than 10 percent above the 2004-2008 period.

FOREX: The week-on-week average of the peso depreciated against the US dollar byP0.34, from P43.94 two weeks ago to P44.28 last 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 companiesimplemented an

increase of P1.00/liter forgasoline andP0.75/liter for diesel

effective 29 December2010. Kerosene alsoincreased by P0.75/literon same day.

For more information, call theDepartment of Energy:Pricing: 840-2187LPG: 840-2130Fuels: 840-5669

SMS: (0915) 4469421Email:[email protected]:htt ://www.doe. ov. h


2/50

OIL MONITORAs of 21 Dec em ber 2010

WORLD OIL PRICES(For Dec em ber 13-17, 2010 trad ing d ays)

Week-on-week Dub a i c rude rose by US$0.55/ bb l. MOPS gasoline and kerosenedec lined by US$0.50/b b l, while d iesel a lso dec lined by US$0.45/bb l co mp ared to itsaverag es in the p revious week.

Duba i crude a long with c rude b enc hma rks WTI and Brent in the US and Europ erespec tively, susta ined their pric es at a round US$90/b b l leve ls for more tha n tw o weeksnow . Rep orts d isc losed tha t the p ric e level is being supported by the dec lining w orldinvento ry. Spec ific a lly for US, the US-DOE sa id in last we eks invento ry report tha t thecountrys crude reserves fell 9.9 million barrels, the biggest weekly drop in eight years.Analysts surveyed by Platts, the energy information arm of McGraw-Hill Cos., had

forec ast a d rop of 3 million ba rrels.

Platts further stressed that the slight fall of the price of gasoline resulted from lowerdem and fo r the p rod uc t in the US ma rket. How eve r, it ad ded tha t pric es a re still beingsupported by demand from India and Indonesia, coupled with the latters delayingp lans to limit co nsumption o f subsidized fuels to the end of the first qua rte r of 2011.

Meanwhile, the p rice of d iesel slightly broke the US$100 a b arrel level susta ined by thestrong dem and for hea ting fue ls in the US northea st reg ion, Europ e and other free zingareas a round the g lob e.

Analysts polled by Dow Jones expect the energy markets to continue to tightenthroug h 2011 as ec ono mic rec ove ry ga ins mo mentum. This will help streng then therec overing d em and and is a key rea son w hy we see c rude oil pric es hea ding to wa rdsUS$100 dolla rs a ba rrel ne xt yea r.

FOREX: The w eek-on-week average of the peso dep rec iate d aga inst the US do lla r byP0.22, from P43.72 two weeks ago to P43.94 last week.

Other rec om me nde d reference sites:

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

DOMESTIC OIL PRICES

Price Common

Range Price

Diesel 35.50-38.60 37.25

Ga soline 45.80-47.24 47.50

E10 45.25-50.97

Aut o LPG 30.57-31.86

LPG, P/ 11-kg

cylinders 710.00-759.00

Produc t s

As monit ored, show n b elow a re the reta il prices inMet ro Manila b eg inning 14 Decem ber 2010

P/ lit er

There a re no ad justments so fa r thisweek on the domestic prices ofpe troleum p rod uc ts.

The last a d justment was an increa seof P1.25/l for gasoline and diesel,and P1.00/l for kerosene effected on14 Dec em ber 2010.
http://www.aip.com.au/pricinghttp://www.med.govt.nz/ers/oil_pet/prices/prices.htmlhttp://www.med.govt.nz/ers/oil_pet/prices/prices.htmlhttp://www.aip.com.au/pricing


3/50

OIL MONITORAs of 14 December 2010

WORLD OIL PRICES (For December 6-10, 2010 trading days)

Week-on-week Dubai crude rose by US$0.80/bbl. MOPS gasoline, diesel and

kerosene also increased by US$4.30/bbl, US$4.40/bbl and US$3.80/bbl, respectively,over averages in the previous week.

According to Platts a draw-down in oil stocks due to stronger regional demand

helped push prices to its highest in 26 months since early last week. Specifically fordiesel, apart from tracking a rise in crude, the demand for the product from China,

Vietnam, and more recently Indonesia, has drawn down diesel oil inventories inAsian market and helped drive prices higher.

An intense early cold spell around the world also supported oil prices. Winter has

gripped much of North America and Europe, with freezing temperatures and snowblanketing much of the continents. This has pushed oil consumption to higher thananticipated levels and caused a surge in oil prices.

Meanwhile, OPEC, as expected, announced yesterday, 12 December 2010, to

keep production ceiling of 24.845 million b/d unchanged, despite a recent surge incrude prices to $90 a barrel. The 12-member cartel's decision was based on its

projection that demand for crude would grow more slowly next year than it did thisyear. Many analysts are of the opinion that US$100 a barrel for crude oil is

inevitable next year though it could well take months.

FOREX: The week-on-week average of the peso appreciated against the US dollar

by P0.27, from P43.99 two weeks ago to P43.72 last week.



DOMESTIC OIL PRICES

The oil companies implemented an

increase of P1.25/liter for gasolineand diesel effective today, 14

December 2010. Kerosene also

increased by P1.00/liter on thesame date.



Price Common

Range Price

Diesel 35.50-38.60 38.75

Gasoline 45.80-47.24 47.50

E10 45.25-50.97

Auto LPG 30.57-31.86

LPG, P/11-kg

cylinders 710.00-759.00

Products

As monitored, shown below are the retail prices in

Metro Manila beginning 14 December 2010

P/liter


4/50

OIL MONITOR

As of 7 December 2010

WORLD OIL PRICES (For November 29 December 3, 2010 trading days)

Week-on-week Dubai crude rose by US$2.15/bbl. MOPS gasoline also increased by US$4.85/bbl,while and diesel and kerosene strengthened by US$2.95/bbl and US$3.00/bbl, respectively, over its

previous week averages.

The price uptrend started about two weeks ago due to the following: reports of massive fiscal bailout for the banking sector in Ireland positive economic data in China and the United States the hope that a plan set to ease Europe's spreading debt problems will be working

By the end of the week, diesel posted the 26-month high resulting from a weaker US dollar and thesoaring cold weather in Europe and the US Northeast. The surging demand for heating oil and

other heating fuels in these places are also supporting crude prices.

Looking forward, the Goldman, Sachs & Co. analysts forecasted that crude are likely to average$110 a barrel by 2012, rising from $100 next year. That would lead to sharply higher retail prices of

petroleum products. The Goldman analysts added that while energy demand may continue to

lag in the US, experts are of the opinion that the impetus for higher oil prices is expected to come

from China. According to the International Energy Agency, the worlds fastest-growing oilconsumer will use 9.6 million barrels a day, up by more than 4% this year.

Meanwhile, OPEC will hold its meeting on 12 December 2010 in Ecuador to review market

conditions, and discuss compliance with existing production targets by the 11 members bound byquotas. According to the news stories by Platts. Libya Oil Minister stressed that the group will likely

keep its production ceiling considering a well supplied and favourable crude price level of US$70-

US$90 a barrel. OPEC has maintained its current production ceiling of 25.845 million b/d sinceJanuary 2009.

FOREX: The week-on-week average of the peso depreciated against the US dollar by P0.09, from

P44.08 two weeks ago to P43.99 last week.



DOMESTIC OIL PRICES

For this week, the oil companies implemented an

increase of P1.50/li for gasoline, P1.25/li for regulargasoline (81 RON) and P0.75/li for diesel and

kerosene effective today, 07 December. Price of

LPG was also increased by P3.00 P3.50 per kg. This

is the 2nd increase for LPG this month in reaction to

the increase in contract price by $142/MT from

$791/MT in November to $933/MT in December.

For better appreciation, a separate article shall beposted as regards the pricing formulas to gauge

domestic price movements.

For more information, call theDepartment of Energy:Pricing: 840-2187

LPG: 840-2130Fuels: 840-5669


Price Common

Range Price

Diesel 34.25-37.35 36.25

Gasoline 44.55-45.99 46.25

E10 44.00-49.72

Auto LPG 30.57-31.86

LPG, P/11-kg

cylinders 710.00-759.00

Products

As monitored, shown below are the retail prices in

Metro Manila beginning 7 December 2010

P/liter


5/50

OIL MONITOR

As of 30 Nove mb er 2010

WORLD OIL PRICES (For 22-26 Novem ber 2010 trad ing d ays)

Week-on-we ek Duba i c rude fe ll by US$0.80/ bb l. Simila rly, MOPS gasoline, diesel and kerosenedec reased by US$0.35/ bb l, US$1.50/ bb l and US$0.85/ bbl, respec tively.

Oil prices declined early last week after Ireland agreed to a massive bailout, a loan offered byEurop ea n Union and Internat ional Moneta ry Fund, to help its troubled banking sec to r. While theterms, conditions and size of loan would still be negotiated, the news helped strengthen the euro,ma king oil, which is traded in do lla rs, chea per for investors holding euro a nd other currenc ies.

While oil prices continued its gradual declines from previous week, the latest report of unexpectedinc rea se in the US o il inventory averted the d ownwa rd trend b y the end o f the week. Anotherrea son w as the latest report of low unem ployment c laims in the US, which fell to its lowest leve lsince July 2008. Duba i c rude as we ll as ga soline and d iesel inc rea sed a total of more tha n twodo lla rs in the last two trad ing da ys of the we ek.

Looking ahe ad , ana lysts expec t the loose of m oneta ry polic y in deve lop ed countries, spe c ifically,the inc rea sed cap ita l flows to emerging ma rkets, the w ea lth e ffec t c rea ted by rising asset values,and lowering financ ing costs to p ush oil p rices higher by next year. Moreover, the strong d em andfrom deve loping ec onomies particula rly in China and Ind ia w ill help o il hit US$100/ bb l in 2011.Chinese oil demand is, expected to jump to record highs by the end of the year despite recentmeasures to c ontain inflation.

Oil prices are a lso expe c ted to b olster in coming w eeks in view of the imp roving c rude de ma nd inde velope d countries tog ether with rob ust c onsumption in emerging e conom ies.

FOREX: The week-on-we ek average o f the p eso d ep rec iated aga inst the US dolla r by P0.30, fromP43.78 two w eeks ago to P44.08 last wee k.

Other rec om mend ed reference sites:


DOMESTIC OIL PRICES

In the table are the prevailing prices of

pe troleum p rod uc ts in Met ro Manila.Price Common

Ran

ge Price

Diesel 34.20-36.35 35.50

Gasoline 43.05-44.49 44.75

E10 42.50-48.02

Kerosene 42.61-47.25

Auto LPG 26.50-27.57

Products

As mon itored, show n b elow a re the ret a il p rices in Met ro

Man ila as of 29 Nov emb er 2010

Flying V has implemented a rollback ofP0.50/ lite r for its gasoline, d iesel a nd keroseneeffec tive 29 Novem be r 2010.

For more information, call the

Department of Energy:Pricing: 840-2187LPG: 840-2130Fuels: 840-5669



6/50

OIL MONITOR

As of 23 Nove mb er 2010

WORLD OIL PRICES (For 15-19 Novem ber 2010 trad ing d ays)

Month-to-date average spot price of Asian Dubai crude increased over average last month byabo ut US$4/ bb l. MOPS ga soline a nd d iesel also inc rea sed by ab out US$3/ bbl and US$4/ bb l,respectively, during the same period.

Week-on-we ek Duba i c rude fe ll by US$2.24/b bl. Simila rly, MOPS gasoline and d iesel dec rea sed byS$1.74/ bbl and S$2.28/ bb l, respec tively.

One o f the fac tors that p rompte d the p rice d owntrend wa s the mo ve of the Bank of Korea to raiseits key interest rate fo r the sec ond time in four months in order to restrain the countrys inflation tha tburst ab ove four percent (4%) in Oc tob er. This wa s followed by spec ulations tha t the Chinesegovernment is also planning to raise interest rates or cut off its money supply as a measure toconta in inflat ion. These ac tions to coo l do wn ec onom ic a c tivities are expe c ted to eventua llyundermine dem and for c rude . China has led the world this yea r in fuel consump tion g row th asdeve lope d count ries strugg le to reg a in rob ust econo mic expa nsions a fter last year's rec ession.

The lingering conc erns ab out Ireland 's deb t p rob lems also p ut p ressure on c om mo dities like oil andraised conc erns ab out d iminished de ma nd. Ireland has be en strugg ling a fter a c ollap se in thehousing market tha t forced the g overnment to t ake ove r three large b anks.

Meanwhile, the Energy Information Administration mentioned in its latest Oil Market Report thatwhile oil stocks have fallen in October, the market remains well-supplied and that there is no

funda mental rea son to expec t demand to surge in 2011.

OPEC, on the other hand , be lieve d tha t c rude p rice range o f US$70-US$90 a barrel is suitab le forboth producers and consumers, as it would encourage investments in the industry without harmingthe g loba l ec ono my. The price o f c rudes has been hovering around US$80/b bl for mo re tha n sixweeks.

FOREX: Month-to-da te ave rag e va lue o f peso a ga inst the US do llar de prec iate d by P0.08, fromP43.40/$ in Oc tober to P43.32/ $ as of 19 Nove mber 2010.



DOMESTIC OIL PRICES

Consistent with the week-on-week movementof inte rna tiona l oil p rices and peso/ US$devaluation in the same period, the domesticprice of gasoline decreased by P0.25/liter;d iesel a lso fe ll by P0.50/ lite r, effe c tive 23Novem be r 2010.

Calculated Price

basedPrice Common

on Announced Ad

j. Ra nge Price

D

Ga

iesel 41.10 34.70-36.85 36.00

soline 50.09 43.30-44.74 45.00

E10 42.75-48.24

uto LPG 26.50-27.57

P/11-kg

cylinders 605.00-667.00

Products

As monitored , shown b elow a re t he reta il price s in M et ro Ma nila

be ginning 23 Nove mbe r 2010

P/ lit er

The year-to-da te p rice increase sta nds a tP3.75/ lite r for gasoline, a nd P4.25/ lite r for d iesel.

A

LPG,

For more information, call theDepartment of Energy:Pricing: 840 2187

SMS: (0915) 4469421E il il i @d h


7/50

OIL MONITOR

As of 16 November 2010

WORLD OIL PRICES (For 8-12 November 2010 trading days)

Month-to-date average spot price of Asian Dubai crude increased over average last monthby about US$4/bbl. MOPS gasoline and diesel also increased by about US$4/bbl during the

same period.

Oil prices advanced week-on-week at an average of about 4%. Dubai crude rose by aboutUS$3/bbl. Similarly, MOPS gasoline and diesel increased by more than US$3/bbl and

US$5/bbl, respectively.

During the week, the price of diesel spiked to over US$100/bbl that was reportedly

aggravated by Chinas drive to curb energy use, exacerbating a shortage of diesel. China is

limiting power supplies to meet Premier Wen Jiabaos goal of cutting energy use under a

five-year plan. This has prompted factories to resort to diesel-powered generators, thus,

driving up demand for diesel.

The general upward trend in oil prices was also sustained by the US Federal Reserve's decision

to inject an additional 600 billion dollars into the market to help stimulate the countryseconomy. Reports also disclosed that the stronger-than-expected US jobs, which signifies the

recovery of the world's largest economy, further supported the oil price hike.

Looking forward, analysts were of the opinion that oil prices will head higher into 2011,

through a combination of stronger crude oil demand and a weaker US dollar. A Morgan

Stanley analyst estimates crude prices will hit $100 a barrel in 2011.

FOREX: Month-to-date average value of peso against the US dollar appreciated by P0.33,from P43.40/$ in October to P43.06/$ as of 12 November 2010.



DOMESTIC OIL PRICES

Consistent with the week-on-weekmovement of oil prices in the

international market, the domestic prices

of gasoline and diesel increased by P1.50

and P2.00 per liter, respectively, effective

16 November 2010.

The year-to-date increase stands at

P3.75/liter for gasoline and P3.25/liter fordiesel.



Calculated Price

basedPrice Common

on Announced Adj. Range Price

Diesel 40.60 32.20-37.35 36.00

Gasoline 49.84 43.05-45.24 45.00

E10 42.25-48.27

Auto LPG 26.50-27.25

LPG, P/11-kg

cylinders 595.00-679.00

Products

As monitored, shown below are the retail prices in Metro Manila

beginning 16 November 2010

P/liter


8/50

OIL MONITOR

As of 9 Novem ber 2010

WORLD OIL PRICES (For 1-5 Novemb er 2010 trad ing d ays)

Month-to-date average spot price of Asian Dubai crude increased over average lastmo nth b y ab out US$3/ bb l. MOPS ga soline a nd d iesel also increa sed by ab out US$2/ bb land US$1/ bb l, respec tively, during the same period .

Week-on-week, Dub a i c rud e rose mo re tha n two (2) dolla rs a b arrel. Simila rly, MOPSgasoline a nd d iesel inc rea sed by more tha n one (1) do lla r per ba rrel.

Ga ins in the oil pric e last w ee k stemm ed from the U.S. Fed era l Reserve's dec ision tospend $600 billion to buy long-term securities, over the next eight months, in its programknown as quantitative e asing . The prog ram is intended to stimulate the slugg ishec ono my b y low ering long -term interest ra tes.

Anticipation of the announcement also weighed on the dollar and boosted the oilp ric es sinc e the c om mod ity is trad ed in d ollars and be c ome s more a ttrac tive to holdersof fo reign c urrenc ies whe n the g reenbac k fa lls.

Oil p ric es we re a lso a ffec ted by the c om ment o f Saud i Arab ia s Oil Minister Ali Al-Naimitha t the c urrent p ric e level, a t abo ve US$80/b b l, is a very c om fortab le zone . Thus,

OPEC g roup will unlikely ad d p rod uc tion outp ut be fore the yea r end s.

FOREX: Month-to-da te a verage value of peso a ga inst the US do lla r app rec ia ted byP1.17, from P43.40/ $ in O c tober to P42.73/ $ as of 5 Nove mb er 2010.



DOMESTIC OIL PRICES

Consistent with the week-on-weekmoveme nt of pric es in the interna tiona l

market, domestic prices of gasolineand diesel increased by P0.25/litereffec tive 8 Novemb er 2010.

Calculated Price

basedPrice Common

on Announced Adj. Range Price

Diesel 38.60 33.20-35.35 34.00

Gasoline 48.24 41.55-43.24 43.50

E10 40.75-46.77

Auto LPG 26.50-27.25

LPG, P/11-kg

cylinders 595.00-679.00

Products


eginning 8 November 2010

P/liter

b

The yea r-to-da te p ric e increa se sta ndsat P2.25/liter, both for gasoline anddiesel.


LPG: 840-2130Fuels: 840-5669



9/50

OIL MONITORAs of 2 Novemb er 2010

WORLD OIL PRICES (For 25-29 Oc t 2010 trad ing days)

The Oc tob er averag e o f Asian Duba i crude wa s highe r by ab out US$5/ bb l com pa red toaverag e last mo nth. MOPS ga soline a nd d iesel likewise inc rea sed by ab out US$7/ bb land US$6/ bb l, respec tively, during t he same period . LPG Co ntrac t Pric e for Nove mb erinc rea sed by US$93.50/ MT to US$791/MT, from US$697.50/ MT in Oc to ber.

Week-on-week, MOPS price s were higher than in previous we ek by less tha n a dollar.

While fundamentals reportedly weighed on the market, particularly the abundance ofoil sup p lies, ana lysts believed tha t the US dollar fluc tua tions aga inst riva l currenc ies ha dprom inent e ffec t on oil p ric es. Rec ently, traders and investors we re c ontem pla ting onthe mo neta ry policy a c tions of the US Fed era l Reserve. The Fed era l Reserve is expec tedto imp lem ent a Trea sury bo nd -buying p rog ram, known a s quantitative ea sing , to spureconomic growth.

On the late st wee kly invento ry rep ort o f US-DOE, ga soline stoc kpiles tum bled by 4.4million ba rrels. How eve r, crude invento ries, which rose b y five m illion b a rrels {far higherthan analysts expectation of 1.5 million}, weighed and limit the upward pricemo vem ent. It wa s rep orted ly the largest build sinc e 1993 and imp orts we re a t their

highest p oint in two mo nths.

FOREX: The Oc tob er average va lue o f pe so a ga inst the US dolla r apprec ia ted by P0.84,from P44.24/$ in Sep temb er to P43.40/$.

Other rec omm end ed reference sites:


DOMESTIC OIL PRICES

For this week, there were noadjustments effected in the prices of

gasoline and d iesel. For LPG, Liqiug azCorp. implemented a P3.00/kg (VATinclusive) increase effective 2Novem ber 2010. Othe r p layers havenot notified yet about their LPGadjustment.

Ca lculat ed Price

basedPrice Common

on Announc ed Ad j. Ra nge Pric e

iesel 38.60 30.95-36.15 33.75

Ga soline 47.34 41.35-42.95 43.00

E10 41.35-46.52

uto LPG 24.70-25.70

LPG, P/11-kg

cylinders 579.50-653.50

Products

s monito red, shown be low are t he reta il price s in M etro M a nila

eg inning 26 Oct ob er 2010

P/liter

D

A

A

b

The ne t inc rea se in Oc tob er forgasoline and d iesel stood a t P1.75/liter and P0.75/ lite r, respec tively.


LPG: 840-2130Fuels: 840-5669



10/50

OIL MONITORAs of 26 Oc tober 2010


Month-to-date average spot price of Asian Dubai crude increased over average lastmo nth b y ab out US$5/ bb l. MOPS ga soline a nd d iesel also increa sed by ab out US$7/ bb land US$6/ bb l, respec tively, during the same period .

Week-on-week, Duba i c rude dec lined by mo re tha n one dolla r a b arrel. Likewise, bo thMOPS gasoline a nd d iesel de c rea sed by about US$2/ bb l.

Oil p rices we re g enera lly lowe r last wee k as the rec overing US dollar was ma king o ilc om mo dity less a ttrac tive for investors holding fo reign c urrenc ies. Another rea son o f thema rg inal slide in oil p ric es resulted from the surprise m ove by China to ra ise inte rest ratesfor the first time in three (3) yea rs. The c ountrys mo ve is ra ttling the g loba l markets andpotentially crimping demand in the worlds biggest energy-using country.

The unexpec ted inc rea se in gasoline supp lies, which sugg ested tha t c rude d em andrem a ins slugg ish in the US, also influenc ed the p ric e o f c rude to below $81/bb l. The US-DOE's Energy Information Administration (EIA) reported that commercial crudeinventories rose less tha n a na lysts ha ve expec ted , but a surprise 1.2 million ba rrel jump inga soline supp lies had greate r imp ac t to the m arket.

FOREX: Month-to-da te a verag e va lue of p eso a ga inst the US dolla r app rec ia ted byP0.80, from P44.24/ $ in Sep temb er to P43.44/$, as of 18 Oc tober 2010.



DOMESTIC OIL PRICES

Consistent to the week-on-weekmoveme nt o f p ric es in the internationa lmarket, domestic prices of gasoline

and diesel rolled back by P0.50/litereffec tive 25 Oc tob er 2010.

Ca lculat ed Price

basedPrice Common

on Announc ed Ad j. Ra nge Pric e

Diesel 38.60 30.95-36.15 33.75

Ga soline 47.34 41.35-42.95 43.00

E10 41.35-46.52

Auto LPG 24.70-25.70

LPG, P/11-kg

cylinders 579.50-653.50

Products

As monito red, shown b elow a re the reta il price s in M etro M a nila

eg inning 26 Oct ob er 2010

P/liter

b

The net inc rea se this mo nth for gasolinestands at P1.75/liter, while that of dieselis P0.75/ liter.




11/50


WORLD OIL PRICES (For 11-15 Oct 2010 trading days)

Month-to-da te a verage spo t p ric e of Asian Dubai c rude inc rea sed by a bo ut US$5/ bb l overits averag e last mo nth. MOPS ga soline a nd d iesel also inc rea sed by ab out US$7/ bb l andUS$6/ bb l, respe c tively, during the sam e period .

Week-on-wee k, Duba i c rude had slight a d justment . MOPS ga soline increased by more thanUS$2/ bb l; d iesel rose b y over one dollar.

Oil price movements over the reference week were predominantly driven by mixedec onomic signa ls in the US, China a nd other key economies. In the first tw o t rad ing days, oilp rices initially moved up a nd down but it surge d in the ne xt trad ing da ys as the US dolla rcont inued to w ea ken ag a inst other currenc ies. Since o il is priced in dolla rs, a weaker dolla r

makes it more attractive to traders who buy with those currencies.

The p rospe c ts of imp rove d o il and g as demand a s forecasted by the IEA and OPEC havealso supp orted p rices. They expec t g lob al ec onom y to strengthen, though a t slow pa ce, bythe end of the year and next year.

Meanwhile, members of the Organization of Petroleum Exporting Countries (OPEC) agreedto keep its oil p rod uc tion quo ta s unc hange d in the meeting held last 14 Oc tobe r 2010. Theyalso ag reed to imp rove com plianc e to the self-imp osed limits as mixed growth in some o f thewo rld s bigge st ec ono mies damp s demand. In December 2008, OPEC had consensus to c ut4.2 million barrel-a-day in output, from its total output of 29.05, as global demand fell by 0.6perce nt, the first d ec line since 1983. While som e o f them w ished for a p rice range of US$90-US$100 a barrel, most o f them believe d tha t the ma rket is currently in an idea l situa tion fo rconsumers and producers.

Loo king a hea d, ana lysts expec t oil ma rkets to remain volat ile.

FOREX: Month-to-da te a verage value of pe so a ga inst the US do llar ap prec iate d by P0.75,from P44.24/$ in Sep temb er to P43.49/$, as of 18 Oc tober 2010.



DOMESTIC OIL PRICES

Consistent to the week-on-week movementoil prices in the international market, the oilcompanies increased the local price ofgasoline by P0.50/liter effective 19 October2010. No adjustment was implemente d fordiesel.

Ca lculat ed Pricebased

Price Common

on Announced Ad

The yea r-to-da te net inc rea se for both

gasoline and diesel stands at P2.50/liter.

j. Ra nge Pric e

Diesel 39.10 31.45-36.60 34.25

Ga soline 47.84 41.35-42.95 43.25

E10 41.35-46.52

Auto LPG 24.70-25.25

LPG, P/11-kg

cylinders 579.50-653.50

Products

As monitored , shown b elow a re the reta il price s in Met ro Ma nila

beginning 12 October 2010

P/liter

For more information, call theDepartment of Energy:

Pricing: 840-2187LPG: 840-2130Fuels: 840-5669



12/50



Month-to-date average spot price of Asian Dubai crude increased by aboutUS$5/ bb l over its average last mo nth. MO PS gasoline a nd d iesel also inc rea sedby about US$6/ bbl during the sam e pe riod .

Week-on-week mo veme nt of Duba i c rude rose by abo ut US$4/b bl. MOPSga soline a nd d iesel bo th increased by mo re than US$4 co mp ared to p reviousweeks average s.

Oil prices had persistent increases in the first four trading days last week,suspec ted to ha ve been influenc ed by the rap id d ec line in the US dolla rs aga instthe euro as we ll as the positive prospec t on the growth of oil dem and. The weakdolla r ma kes dolla r-denominated c rude oil chea per for ove rsea s buyers. Aweaker dollar also bolsters the appeal of commodities like oil as an alternativeinvestment to investors or financial speculators who are profusely investing cashinto the ma rket. Also, the yen struck a new 15-year high last week.

By the end of the week, reports of abundant supplies and the delayed start ofhea ting sea son reversed prices dow n by a bout US$2 a b a rrel. The market wa salso looking ahead to an output meeting of the Organization of PetroleumExpo rting Countries (OPEC) on Thursday, 14 Oc tober 2010, in Vienna . OPEC,

which pumps 40 percent of the world's crude oil, will decide whether to alteroutput. Energy ana lysts expec t no cha nge as the ca rtel's 12 me mb ers appea rsa tisfied with c urrent p rices.

FOREX: Month-to-da te a verage value of peso a ga inst the US do lla r app rec ia tedby P0.64, from P44.24/ $ in Sep tember to P43.60/ $, as of 12 Oc tober 2010.



DOMESTIC OIL PRICES

Consistent to the week-on-weekmovement oil prices in theinternational market, the oilcompanies increased the localprice of gasoline by P1.25/literand and diesel by P1.00/litereffec tive 12 Oc tob er 2010.

The year-to-da te net inc rea se ingasoline and diesel raised to

P2.00 and P2.50 per liter,respectively.

Ca lculat ed Price

basedPrice Common

on Announced Ad j. Ra nge Price

Diesel 39.10 31.45-36.60 34.25

Ga soline 47.84 41.35-42.95 43.25

E10 41.35-46.52

ut o LPG 24.70-25.25

PG, P/11-kgcylinders 579.50-653.50

Products

As monitored , shown b elow a re the ret ail price s in M et ro M anila

eg inning 12 Oc to b er 2010

P/liter

A

L

b


13/50


WORLD OIL PRICES (For 27 Sep - 01 Oc t 2010 trad ing d ays)

Month-to-date average spot price of Asian Dubai crude increased by aboutUS$5/ bb l over its average last mo nth. MO PS gasoline a nd d iesel also inc rea sedby about US$5/ bbl during the sam e pe riod .

Week-on-week mo veme nt of Duba i c rude rose by abo ut US$1/b bl. MOPSgasoline and d iesel also inc rea sed by about US$2 and US$1/ bb l, respec tively.

Oil prices moved marginally higher than previous week averages in view ofpositive ec onom ic news in the US, suc h as, the d ec line in c laims for job lessbenefits and imp rovem ent of manufac turing a c tivity in some p art of the c ountry.The la test data on US inventories on c rude, gasoline and d istillates a lso rep orted lysent oil p rices highe r. However, o il trad ers believed tha t investment funds,particularly hedge funds, were likely behind the marginal increases in oil pricessince crude inventories and distillates stockpiles are nearly 18 percent and 30perc ent, respe c tively, above the a verage be tween 2004 and 2008.

OPEC market evaluations showed that crude oil prices could possibly increaseand reach around US$80/b b l as the c old sea sons beg in. Duba i c rude, the Asianbenc hmark, has bee n rang ing US$70 to US$77 a ba rrel since June 2010.

FOREX: Month-to-da te a verage value of peso a ga inst the US do lla r app rec ia tedby P0.43, from P44.24/ $ in Sep tember to P43.81/ $, as of 4 Oc tober 2010.



DOMESTIC OIL PRICES

The oil comp anies increased theirprices of gasoline and diesel byP0.50 and P0.25 per liter,

respectively, effective 5 October2010. This reflec ts the pricemovement of these products inthe international market lastweek versus the p revious week.

Ca lculat ed Price

basedPrice Common

on Announc ed Ad j. Ra nge Price

iesel 38.10 32.45-35.60 33.25

a soline 46.59 40.10-41.70 42.00

E10 40.10-45.27

Aut o LPG 24.70-25.25

cylind ers 565.00-630.00

Products


beginning 5 October 2010

P/liter

D

G

The year-to-da te net inc rea se ingasoline to ta lled P0.75/ lite r, whileis P1.50/ lite r.

For more information, call theDepartment of Energy:Pricing: 840-2187LPG: 840-2130



14/50

OIL MONITORAs of 28 Sep tember 2010

WORLD OIL PRICES (For 20-24 Sep tember 2010 trad ing d ays)

Month-to-da te a verag e spo t p rice o f Asian Duba i c rude increased by a bo utone dolla r a ba rrel over ave rage last month. In the c ontrary, MOPS ga solineand d iesel dec rea sed slightly by $0.17/b bl in the same c omparat ive pe riod .

Oil prices were generally down, albeit slightly, last week as the marketweighed the m ixed ec onomic da ta from key ec onomies and a surplus in USoil inventories. Dubai crude price slipped week-on-week by about half adollar. MOPS gasoline p rice a lso fa ll mo derate ly, while d iesel sta yed in thesame level as the previous we ek.

Analysts were of the opinion that on top of high supply levels and stronger US

dollar, concerns about the global economic recovery continued to sendmixed signa ls to the oil ma rket. Ec ono mic rep orts in the U.S., eurozone , andother key economic countries were said to have been dictating oil prices.As suc h, price s will likely hover on the average $70 to $80 a barrel for the restof the yea r.

FOREX: Month-to-da te a verage va lue o f peso a ga inst the US dolla rapprec iated by P0.48 from P45.17/$ in Aug ust to P44.29/ $ as of 27 Sep temb er2010.

Other recom mend ed reference sites:

(1) http:/ / ww w.aip.com .au/ pricing (2) http:// www .med.govt.nz/ ers/ oil_pet/ price s/ price s.html

DOMESTIC OIL PRICES

The o il c ompanies dec rea sedtheir prices of gasoline byP0.25 per liter effective 28Sep tember 2010. This reflec tsthe price movement in theinternational market last weekversus the previous week.

Year-to-date, the total netinc rease is P0.25/ lite r forgasoline and P1.25/ liter fordiesel.

For more information, call theDepartment of Energy:Pricing : 840-2187LPG: 840-2130Fuels: 840-5669

SMS: (0915) 4469421Email:[email protected]: htt ://www.doe. ov. h

C a lcu la te d Price b a se d Price C ommo n

on Announc ed Ad j. Range Pric e

Diesel 37.60 32.20-35.35 33.00

Gasoline 46.34 39.60-41.20 41.50

E10 39.60-44.77

Auto LPG 24.70-25.25

LPG, P/11-kg 565.00-630.00

Products

As monitored, show n be low are the retail prices in Me tro Ma nila

be ginning 28 Sep tembe r 2010

P/liter


15/50

OIL MONITORAs of 21 Sep tember 2010

WORLD OIL PRICES (For Sep tember 13-17, 2010 trad ing d ays)

Month-to-date average spot price of Asian Dubai crude increased a dollarper barrel over the a verage last month. Meanwhile, MOPS ga soline slightlydec rea sed , while d iesel inc rea sed by ab out ha lf a d olla r.

Week-on-week move ment of Duba i c rude rose by ab out US$1.50/b b l. MOPSgasoline and d iesel also inc rea sed by more than US$1/ bb l.

The up -trend in c rude p ric es in the rec ent two we eks wa s b roug ht b y theclosure of the key pipeline, which carries about one third of Canadas crudeto the United Sta tes, and the highe r oil demand forecasts by the Internat ionalEnergy Ag enc y and OPEC fo r the rest o f the yea r.

The imm ed iate rep air of the key Line 6A Canadian-US p ipe line has b roug htp rices mo derately low er last Thursday. How eve r, the strong industria l outputin China that rose by 14 percent in August, and fresh confidence in the USec onomy weighed and kept pric es volatile. The new c onfide nce c am e fromsome renowned ec onomists and investors who rea ssured the ma rket tha t theUS ec onomy w ould no t slump into a doub le-dip rec ession.

FOREX: Month-to-da te a verage va lue o f peso a ga inst the US dolla rapprec iated by P0.77 from P45.17/$ in Aug ust to P44.40/ $ as of 20 Sep temb er2010.



DOMESTIC OIL PRICES

The o il com panies increa sedtheir prices of gasoline anddiesel by P0.50 and P0.25 perliter, respectively, effective 21Sep tember 2010. This reflec tsthe price movement of theseproducts in the internationalmarket last week versus theprevious week.

To d a te, the tota l net inc rea sethis year is P0.75/ lite r forgasoline a nd P1.00/ lite r for d iesel.

For more information, call theDepartment of Energy:Pricin g: 840-2187LPG: 840-2130

Fuels: 840-5669


Ca lcu la te d Price b a se d Price Co mmo n

on Announc ed Adj. Range Pric e

Diese l 37.60 32.20-35.35 33.00Gasoline 46.59 39.85-41.45 41.75

E10 39.85-45.02

Auto LPG 24.70-25.25

LPG, P/11-kg 565.00-630.00

Products

As monitored, show n be low are the retail prices in M etro M anila

be ginning 21 Sep temb er 2010

P/liter


16/50

OIL MONITORAs of 14 Sep temb er 2010

WORLD OIL PRICES (For Sep temb er 6-10, 2010 trad ing d ays)

Month-to-date average spot price of Asian Dubai crude is almost the same as theave rag e last month. MOPS ga soline and d iesel meanw hile dec lined b y abo utUSS1/bb l in the same c om para tive pe riod .

Week-on-wee k move ment showed that Duba i crude rose b y more tha n US$2/ bb l.MOPS ga soline a nd d iesel bo th increa sed by ab out US$1/ bb l.

While the daily postings of crude and products seesawed last week, averageshoweve r increased by ab out one p ercent over a w eek ago . Some o f the rea sonsbe hind the price fluc tua tions we re as follows:

The Inte rnat iona l Energy Agency, in its latest Oil Market Rep ort, ra isedoverall forecast for global oil demand for 2010 by 50,000 barrels perday to 86.62 million b/d, reflecting mainly the higher-than-expectedde ma nd in North Ame rica and ad vanc ed countries in Asia.

OPEC also slightly raised its previous forecasts of world oil demand by10,000 b/ d to 85.51 million b/ d this yea r and 85.56 million b / d in 2011.

The c losure of key p ipeline c arrying c rude to t he US. Oil traders are taking advantage of the widening gap between

current p rices of c rude a nd c ont rac ts for de livery six mo nths from now . Oil traders speculations that fuel demand will decline as summer

consump tion in the US end ed . Slid ing eq uity ma rkets and firme r dollar in the mid-wee k.

FOREX:Month-to-da te average va lue of peso ag ainst the US do llar ap prec iated b yP0.22 from P45.17/ $ in August to P44.55/ $ as of 10 Sep temb er 2010.



DOMESTIC OIL PRICES

Corresponding to thedevelopments in the internationalmarket, the domestic pump pricesof diesel decreased by P0.25/litereffec tive 13 Sep temb er 2010. No

adjustment was effected onunleaded gasoline except forregular gasoline (81 RON), whichdec lined a lso by P0.25/ lite r.

To d ate, the tota l net increase t hisyear is P0.25/ lite r for ga soline a ndP0.75/ liter for d iesel.

For more information, call theDepartment of Energy:Pricin g: 840-2187LPG: 840-2130Fuels: 840-5669


Calculated Price Price Range Commonbased on Announced Adj. Price

Diesel 37.10 31.70-34.85 32.50Gasoline 46.34 39.60-41.20 41.50

E10 39.60-44.77

Auto LPG 25.52-26.07

LPG, P/11-kg cylinders 533.00-618.00

Products

As monitored, shown below are the retail prices in Metro Manila beginning 14

September 2010

P/liter


17/50

OIL MONITORAs of 7 Sep temb er 2010

WORLD OIL PRICES (For Aug ust 30 Sep tember 3, 2010 trad ing d ays)

Month-to-date average spot price of Asian Dubai crude decreased by aboutUS$1/ bb l c om pared with average last mo nth. Simila rly, MOPS gasoline a nd d ieselinc rea sed by m ore than USS1/b bl in the sam e c om pa rat ive p eriod .

Week-on-week movement showed that Dubai crude declined by more thanUS$2/ bb l. MOPS ga soline d ec rea sed by ab out US2/bbl; mea nwhile, diesel also fe llby more tha n US$1/ bb l.

Asia crude benchmark Dubai rose by about two percent (2%), trailing the pricetrend of WTI and Brent , the respe c tive c rude b enc hma rks in the US and Europe .Ana lysts we re o f the op inion that the monthly rep orts of key e conomic indicato rs inbig ec onomies have predominant effec t on the oil ma rket.

Spec ific ally, oil prices moved higher last week follow ing the new s of strongma nufac turing d ata in lead ing e nergy consumers China a nd t he US, easing d oub tsabo ut the streng th of the g loba l rec ove ry. While the US DOE we ekly rep ort on crudeinventories rose by one percent (1%) for the week ended Aug. 27, traders shruggedoff the news and instea d foc used on the lower dollar and the stoc k markets, wheresigns of the ec onom y and p etroleum d em and ma y go in the next few months. The be arish underlying fundame nta ls ma ke it extreme ly ea sy for oil to d rift low er orhigher in response to the stock markets an ana lyst said .

Nevertheless, forecasts on Hurricane Earl and the five-day halt last week of Iraqiexports, due to pipeline bombing, did not have any considerable effect on the

we eks p rices.

FOREX: Month-to-da te average va lue of peso ag ainst the US do llar ap prec iated b yP0.34 from P45.17/ $ in Aug ust to P44.83/ $ as of 6 Sep tember 2010.



DOMESTIC OIL PRICES

Local oil prices inccreased byP0.50/liter, both for gasoline andd iesel effec tive 7 Sep temb er 2010.

This reflec ts the up ward m ove mentof oil prices in the internationalma rket last week vs p revious we ek.

LPG prices also increased on thesame day by P1.00/ kg o r P11/ 11kg-c ylind er (VAT exc lusive) to fu llyreflect the inc rea se n c ontrac t p rice fo r Sep tem be r by $55/ MT.




Diesel 37.35 31.95-35.10 32.75Gasoline 46.34 39.60-41.20 41.50

E10 39.60-44.77

Auto LPG 25.52-26.07


Products


September 2010

P/liter


18/50

OIL MONITORAs of 17, August 2010

WORLD OIL PRICES (For August 9-13, 2010 trad ing days)

Month-to-da te a verage p rice of Asian Duba i c rude increased b y ab out US$4/ bb l c om pa red

to July a verag e. Similarly, MOPS ga soline increa sed by abo ut US3/b b l, while d iesel increa sedby a bo ut US$5/ bb l for the sam e p eriod .

Week-on-week mo veme nt showe d tha t Duba i c rude de c lined b y more than US$2/ bb l.MOPS ga soline and d iesel likewise d ec reased by abo ut US$3/ bb l and US$2/ bb l, respec tively.

The energy m arket was ba c k to the p revious trad ing range o f 70-80 do llars pe r ba rrel, asglob a l unc ertain co nd itions and fa irly disapp ointing ec ono mic figures from the United Sta tes,Eurozone a nd China w eigh heavily on the m arket. The d ownwa rd t rend w as triggered b y awa rning b y the US Fed eral Reserve tha t US reco very would b e wea ker tha n antic ipa ted ,forcing investors onto the d efensive.

Analysts opined that the ghosts of a global economic slowdown are back and haunting the

oil ma rket a ga in. Despite revisions ma de by the Inte rna tiona l Energy Agenc y (IEA) andOrga nizat ion of Petroleum Exporting Countries (OPEC) o f highe r global oil dema nd forec asts,fears of a slowdown in these major economies are bringing back remnants of the recessionc aused by financ ial c risis in 2008.

The IEA lifted its estima te for world o il dem and for yea rs 2010 and 2011 by 80,000 and 50,000barrels per day, respectively, on the basis that the global economy will grow 4.5 percent in2010 and 4.3 pe rcent in 2011. The revised figures mean to ta l dem and this yea r would rise b y1.8 million b a rrels per da y, or 2.2 p erce nt, to 86.6 million. Dema nd wo uld a lso rise b y 1.3million ba rrels per da y or 1.5 pe rcent to 87.9 million ne xt yea r, ac c ording to t he IEA.

OPEC mea nwh ile sees wo rld o il de ma nd g rowing b y just 1 million b /d b oth this yea r and ne xt,from 84.46 million b / d in 2009 to 85.5 million b / d in 2010 and 86.55 million b / d in 2011. OPEC

warned, however, that a slower economy in the second half of the year, caused by aphasing out o f fisca l stimulus, would likely affec t d em and .

FOREX: Month-to-da te a verage value of pe so a ga inst the US do llar ap prec iated by P1.13from P46.28/ $ in July to P45.15/$ as of 17 Aug ust 2010.



DOMESTIC OIL PRICES

Most of the oil companies decreasedthe ir p ric es by P1.00/ lite r for ga solineand diesel effective 17 August 2010.This reflec ts the d ow nwa rd mo vem entof oil prices in the international marketlast week vs previous week.

The total ne t inc rease so far this yea rfor unlea ded gasoline is P1.00/ lite r,while tha t o f d iesel is P1.75/ liter.




Diesel 38.10 32.80-35.80 33.50Gasoline 47.09 40.35-41.80 42.25

E10 40.35-45.52

Auto LPG 23.67-23.92


Products


August 2010

P/liter


19/50


WORLD OIL PRICES (For August 2-6, 2010 trading days)

Month-to-date ave rag e p ric e o f Asian Duba i c rude inc rea sed by a bo ut US$5/ bb lc om pa red to a verag e July. Similarly, MOPS ga soline a nd d iesel inc rea sed by ab outUS$4/b b l and US$6/ bb l, respec tively, in the same period .

Week-on-wee k mo vem ent show ed tha t Duba i c rude rose by ab out US$4/ bb l. MOPSgasoline and d iesel likew ise increased by ab out US$3/b b l and US$4/b b l, respec tively.

Oil prices had persistent increases over the past week, which averages moved further

over the previous week by about five percent as investors and traders focused theira ttent ion on reports of key ec ono mic indica tors and oil invento ries in the US. Hurric anec onc erns in the US Gulf of Me xic o a lso w eighed on oil pric es.

Pric es pa rticularly we nt up ea rly last w ee k on ne ws tha t the US ma nufac turing sec tor

expa nd ed for the 12th straight month in July. It was further supported b y thec om bina tion of b ullish stoc ks and we ak dollar. A we ak US c urrenc y ma kes dolla r-pric ed

commodities cheaper for buyers using stronger currencies and therefore tends tostimulate de ma nd.

Prices also strengthened on fears about the ongoing hurricane season in the Gulf of

Me xic o, whe re many US energy insta lla tions a re ba sed . In the short te rm, the hurrica neseason is likely to continue spurring on bullish sentiment in the oil market as potentialsto rms threa ten US and Mexic an infrastructure.

By the end of the w eek, som e p ositive ec onom ic da ta w as outwe ighe d by a n inc rea sein invento ries of US d istillate and gasoline. Ga soline stoc ks rep orted ly rose 700,000 ba rrelslast we ek, c om pa red w ith averag e expec ta tions of 800,000-ba rrel dec line. Ame rica n

c rude stoc kpiles, mea nwhile, d rop ped by 2.8 million ba rrels pa rtly due to grea ter refineryutiliza tion in the last we ek o f July by 0.6 percent.

FOREX: Month-to-date ave rag e va lue of p eso a ga inst the US do llar ap prec iat ed byP1.12 from P46.28/$ in July to P45.16/$ as of 6 Aug ust 2010.



DOMESTIC OIL PRICES

Most of the oil companies increasedthe ir p ric es by P0.50/liter for gasolineand P1.00/liter for diesel effective 9

August 2010.

The tota l net inc rease so fa r this yea rfor unleaded gasoline is P2.00/liter,

while tha t o f d iesel is P2.25/ lite r.

For more information, call theDepartment of Energy:Pricin g: 840-2187LPG: 840-2130

Fuels: 840-5669



Diesel 38.10 33.80-36.80 34.50Gasoline 47.59 41.35-42.80 43.25

E10 41.35-46.52

Auto LPG 23.67-23.92


Products


August 2010

P/liter


20/50


WORLD OIL PRICES (For July 26-30, 2010 trading days)

Month-to-da te a verage p rice of Asian Dubai crude increa sed b y abo ut US$3/ bb l c omp ared toJuly. Similarly, MO PS gasoline and d iesel inc reased by ab out US$2/b b l and US$4/b b l, respec tively.

LPG Contrac t Price fo r August d ec reased by US$33/M T to US589/M T, from US$622/ MT in July.

Week-on-week mo veme nt showe d t hat Dub ai crude slightly moved highe r last we ek by ab out halfa dolla r, simila r to MOPS ga soline. MOPS d iesel, on the other hand , rose b y almo st one d ollar abarrel.

World oil prices moved slightly higher as oil traders closely watched the movement of the dollar,stoc k ma rkets, ea rnings, ec ono mic da ta and US inventory rep ort for clues ab out investo r sentime ntand the strength of the U.S. and g loba l ec ono mies. It has be en d isc losed in a resea rch repo rt byan investment ba nk that the ma in driver of oil prices has be en frisky abo ut the ec onom ic reco very.

Pric es initially slipped ea rly this we ek as investo r conc erns over a sto rm threa t to e nergy insta lla tionsin the Gulf of Me xic o e ased. Trop ica l storm Bonnie also relieved ma rket fe ars as it b lew itself out inthe Gulf of Mexico o ver the we ekend.

Spe c ifica lly, the following news from key ec onom ies supp orted t he m ixed mo veme nt o f oil priceson the fo llowing trad ing da ys of the w eek:

Positive ec ono mic p erformanc e in Asia A rise in eurozone business and c onsume r co nfidenc e is at its highest leve l in more tha n

two yea rs.

Firmer eq uities and the w ea ker do llar afte r rec ent fa lls that were spa rked b y do wnb ea tnew s in key c onsumer, the United Sta tes.

US DOEs invento ry rep ort last Wed nesday on c rude a nd p roduc ts. Crude oil inventories jumped 7.3 million barrels last week, the strongest weekly

increase since Oc tob er 2008. The m arket expec ted for a drop of 1.4 million b arrels; Gasoline (petrol) stocks rose 100,000 barrels, below analyst expectations for a build of

500,000 ba rrels; Distillates, which include heating oil and diesel, rose by 900,000 barrels, while analysts

projec ted a 2.1-million-barrel ga in.

FOREX: Month-to-da te a verage value of pe so ag ainst the US do llar a pp rec iated by P0.92 fromP46.28/ $ in July to P45.36/ $ as of 3 Aug ust 2010.

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

DOMESTIC OIL PRICES

Most of the oil companies implemented adecrease of P0.25/liter for both gasoline andd iesel effec tive today, 3 August 2010.

The tota l net increa se so far this yea r forunlead ed ga soline is P1.50/ liter, while tha t o fd iesel is P1.75/ liter.

LPG prices also decreased by P1.00/kg (VATexclusive), effec tive tod ay, p artly reflec ting thereduction in LPG Contract price for August byUS$33/MT, fro m US$622/MT in July to US589/MT,.

For more information, call theDepartment of Energy:Pricing : 840-2187LPG: 840-2130Fuels: 840-5669

SMS: (0915) 4469421

Email:[email protected]

Website:htt ://www.doe. ov. h


Diesel 38.35 32.80-35.50 33.50Gasoline 47.84 40.85-42.30 42.75

E10 40.85-46.02

Auto LPG 23.67-23.92


Products


August 2010

P/liter


21/50

OIL MONITORAs of 27, July 2010

WORLD OIL PRICES (For July 19-23, 2010 trad ing days)

Month-to-da te averag e pric e of Asian Duba i c rude dec rea sed b y ab out US$2/ bb l. Similarly,

MOPS ga soline a nd diesel dropp ed by m ore than US$1/ bb l com pa red to a verag e in June.

Week-on-wee k, Duba i crude wa s a lmost the same as the p revious week w hile MOPS ga solineand d iesel inc rea sed by less tha n a dolla r per ba rrel.

World oil pric es rema ined do minated by woe s ab out the state of the ec onom y as it fell in thefirst trad ing d ay last we ek follow ing the release o f the US ec ono mic o utlook da ta , whic h

showe d c onsumer sentiment d ec line to a nea r one-yea r low .

However, this was reversed on the second day of the week, reflecting traders anticipation ofbullish invento ry reports. Yet , the m arket w as surprised on Wed nesday by the US Dep artm ent

of Energy s late st d a ta showing tha t US c rude oil reserves rose by 400,000 ba rrels in the we ekend ing July 16. Ana lysts expec ted a large d rop o f 1.3 million b a rrels.

Ove r the past three w ee ks, inventory snapshots were c onsidered as one of key indic ators of o ildem and , pa rticularly in the US, where it c onsec utively show ed large r tha n expec ted de c lines.

Oil and othe r ene rgy c ontrac ts a lso b ene fited from surging stoc k pric es.

While the c om me nts from US Fed era l Reserve c hief Ben Bernanke o f unusua l unc erta intyover the world s bigg est ec onom y weighed on the o il market, it never had muc h effec t on thisweeks oil price hike. Oil prices had steady advances as energy producers worry about the

po tential da ma ge that c ould b e b roug ht b y Trop ic al Storm Bonnie to Gulf of Me xic o o iloperations.

FOREX: Month-to-da te a verag e va lue of peso a ga inst the US dollar de p rec iated by P0.08 fromP46.32/ $ in June to P46.40/$ as of 26 July 2010.

Other recom mend ed reference sites:(1) http:/ / ww w.aip.com .au/p ricing (2) http:/ / www .med.govt .nz/ ers/ oil_pe t/ price s/ pric es.html

DOMESTIC OIL PRICES

As of today, no adjustment yet has beenimplemented by any of the local oilp layers. The rec ent move me nt wa s an

increase of P0.75/liter for both gasolineand d iesel, effec ted last 20 July 2010.

The t ota l net increa se fo r the yea r (as of27 July) for both unleaded gasoline and

d iesel rema ins a t P1.50/ lite r.

For LPG, the LPG Marketers Association

(LPGMA) implemented this week their 4thstaggered rollback on LPG prices for Julyby P0.50/kg. This b ring s the ir to ta l dec rease fo r the mo nth to P2.00/kg. The red uc tion was still

a reflec tion o f the US$48/ MT mo nth-on-mo nth d ec rease in Contrac t Pric e (CP) from US$670/MTin June to US$622/M T in July. The m a jor c om panies imp leme nte d a rollbac k of P2.00/kg (VA Texc lusive) e ffec tive July 2, 2010.

For more information, call theDepartment of Energy:Pricing : 840-2187LPG: 840-2130

Fuels: 840-5669



Diesel 37.85 32.30-34.60 33.25Gasoline 47.59 40.85-43.50 42.75

E10 40.85-46.02

Auto LPG 24.00-25.80


Products

As monitored, shown below are the retail prices in Metro Manila beginning 20 July

2010

P/liter


22/50

OIL MONITORAs of 20, July 2010


Month-to-da te a verage pric e o f Asian Dubai c rude de crea sed by a bo ut US$2/ bb l. Similarly, MOPS

ga soline and diesel drop pe d b y ab out US$2/ bb l c omp ared to ave rag e in June.

Week-on-week, Duba i crude , as we ll as MOPS gasoline and d iesel, inc reased by m ore tha nUS$2/bb l.

Dubai crude price swung up and down in last weeks five (5) trading days in the lower-to-mid$70/b bl. The ave rag e, howeve r, moved higher by ab out three (3) pe rc ent over previous we ek.While M OPS gasoline and d iesel followed similar trend , prices sta yed ab ove $80/b bl levels asinvestors digest the quarterly reports on corporate operations, and mixed economic and supplydata .

Prices slightly moved up Monday but retreated the following day as traders cashed in and tookprofits from o il. The big up wa rd move w as seen Wed nesday resulting from the genuineimproveme nt and c onfidenc e in the prospe c t for a sustainab le ec onom ic rec overy. A strong

outlook for global crude demand pushed prices up, and oil continued to climb slightly higherfollow ing a be tter-than-expec ted wee kly US go vernment inventory rep ort.

The Energy Informa tion Ad ministration's data on c rude oil stoc ks d ec lined by 5.1 million ba rrels,while ana lysts expe c ted them to d rop by 2.6 million ba rrels. Ga soline and d istillates inventoriesjump ed ab ove analysts' expec ta tions but ec ono mists shrugge d of the w ea kness, saying it wa s likelydue to the p ost-holiday dec line in travelling. Further, ana lysts be lieved tha t the varying d a ta oninventory repo rts a re mo stly supp ortive of higher p ric es.

Oil prices retreated again by about one (1) percent through Friday, as investors pondered howmuc h a pullba c k of the US go vernment s stimulus spe nding c ould und ermine g loba l eco nomicgrowth a nd c rude d ema nd in the sec ond half. Nonetheless, analysts expec t supp ly-dema ndbalance to continue to tighten in the second half, as sustained global economic growth, albeit ata slower pac e, co ntinues to strengthen d ema nd.

Som e a nalysts expe c t strong o il de ma nd from d eve loping e c ono mies to o ffset sluggishc onsump tion in rich c ount ries and help p ush pric es higher. China s ec ono my grew 10.3 pe rcent inthe sec ond qua rter while Singap ore reported a rec ord 19.3 per c ent surge .

FOREX: Month-to-da te a verage value of pe so a ga inst the US do llar de prec iated by P0.05 fromP46.32/$ in July to P46.42/ $ as of 19 July 2010.

Other recom mend ed reference sites:(1) http:/ / ww w.aip.com .au/ pric ing (2) http:/ / www .med.govt .nz/ ers/ oil_pe t/ price s/ pric es.html

DOMESTIC OIL PRICES

Most of the oil companies implemented an

increa se o f P0.75/ liter for b oth ga soline andd iesel, effec tive 20 July 2010. These reflec tsthe p rice m ovem ent in the internatinal ma rketlast we ek versus the p revious we ek. Am ongthe major players, Petron has not yet notifiedthe Burea u of a ny price a djustments.

The tota l net inc rease fo r the yea r (as of 20July) for both unleaded gasoline and diesel isP1.50/lite r.

For more informat ion, cal l theDepartment of Energy:Pricing: 840-2187LPG: 840-2130

Fuels: 840-5669

SMS: (0915) 4469421Email: [email protected]: http: / /www.doe. ov.ph


Diesel 37.10 33.05-35.35 33.25Gasoline 46.84 41.60-44.25 42.75

E10 41.60-46.77

Auto LPG 24.00-25.80


Products


2010

P/liter


23/50

OIL MONITORAs of 12 July 2010


Month-to-da te a verage pric e o f Asian Dubai c rude de crea sed by a bo ut US$3/ bb l. Similarly, MOPS

ga soline and diesel drop pe d b y ab out US$3/ bb l c omp ared to ave rag e in June.

Week-on-week, Duba i crude , as we ll as MOPS ga soline and diesel, dec reased by m ore tha nUS$2/bb l.

The week sta rted w ith world oil pric es hitting one-month low s as trad ers reac ted to a n unc ertainout look for ene rgy dem and in a frag ile ec ono mic rec ove ry. The US and China rec ently disc loseddisappointing economic data, which continued to weigh on market sentiment on the strength ofthe ec ono mic rec ove ry. The US and China are the world s first and sec ond bigg est consume rs ofenergy.

Prices, however, partly recovered on the next day as many traders went bargain hunting andma rket sentime nt wa s bo osted by soa ring glob al stoc k ma rkets. It wa s further boo sted by a nupgrade in world growth expectations by the International Monetary Fund (IMF), and a larger-

tha n-expec ted d rop in US c rude inventories. Duba i and MOPS p ric es seesaw ed o n thesuc c eed ing trading d ays of the we ek while Brent a nd WTI followe d an uptrend.

The IMF raised its 2010 world grow th fo reca st to 4.6 pe rcent from 4.2 pe rc ent, a lthoug h it saidEurope needs to act quickly to resolve its debt crisis and bolster consumer confidence or theec ono mic rec ove ry ma y sta ll. The IMF bo osted its grow th estima te for the U.S. eco nom y to 3.3pe rc ent from 2.7 percent and said the co untry should ta ke more step s to c urb its bud ge t d eficit. Ita lso raised its g row th forec ast for China to 10.5 perce nt from 10 pe rcent .

On t he o the r hand , rising o il p ric es a lso c ame as US c rude inventories shrank b y 5 million b arrels to358.2 million barrels, but still 3.1 percent higher than year-ago levels and above the upper limit ofthe a verag e range for this time o f year. Me anw hile, ga soline supplies grew , ind ica ting of sluggishdem and fo r ga s in the co untrys pea k summ er driving sea son.

FOREX: Month-to-da te a verage value of pe so a ga inst the US do llar de prec iated by P0.11 fromP46.32/$ in July to P46.42/ $ as of 12 July 2010.


DOMESTIC OIL PRICES

The oil co mp anies implemented a sec ondrollback this month of P1.50/l for gasoline andd iesel, ef fec tive 12 July 2010. This p ricerollbac k reflec ts the d ec rea se in MOPS pricesas well as the impact of tariff cut of about

P0.70/lite r.

Executive Order No. 890 reduced tariff dutieson crude and petroleum products from three(3) perce nt to zero (0) percent. The ta riff c uttook effect fifteen (15) days after itspublication in a newspaper of generalc irculation. Said EO wa s published in theManila Time s last June 19. The Burea u ofCustoms (BOC) issued Customs Memorandum Circular (CMC) No. 127-2010 dated 05 July 2 010 toimp lemen t said EO.

For more informat ion, cal l theDepartment of Energy:Pricing: 840-2187LPG: 840-2130Fuels: 840-5669

SMS: (0915) 4469421

Email: [email protected]:http: / /www.doe. ov.ph


Diesel 37.10 31.65-33.85 32.50Gasoline 46.84 40.20-42.50 42.00

E10 39.95-42.27

Auto LPG 24.30-24.55


Products


2010

P/liter


24/50

OIL MONITORAs of 5 July 2010

WORLD OIL PRICES (For 28 June 2 July 2010 trading days)

Month-to-date average price of Asian Dubai crude is lower than June average by about $3/bbl.

MO PS gasoline and d iesel are a lso lower by about US$3/b b l. Similarly, LPG Cont rac t Pric e (CP) forJuly dec rea sed by US$48/M T to US$622/MT, from US$670/ MT in June .

Week-on-week, Duba i c rude de c reased b y about $2/ bb l versus previous we ek. MOPS ga solineand diesel also d ec lined b y ab out $2/ bb l and $3/b bl, respe c tively.

On Monday, 28 June 2010, oil prices advanced about two (2) percent from last Friday postings.However, it slumped by about three (3) percent the following day and continued to slide in thenext two trad ing d ays due, in pa rt, to news of ma jor do wng rad e of key ec onom ic indicators in thewo rld s biggest ene rgy consume rs, US, China a nd Japan .

In Asia, China's Conference Board released a report that its economic index increased by only 0.3perce nt in Ap ril instea d of 1.7 pe rcen t, as origina lly estima ted . Other data d isc losed t he outloo k forthe weak economy of Japan, such as, (1) increase in unemployment rate (2) decline in factory

outp ut and (3) red uce d household c onsump tion. China and Jap an are am ong the wo rld's bigg estc onsume rs of e nergy.

A series of reports also revea led m ore neg at ive new s ab out t he U.S. ec ono my: (a) job less c laimsrose more than expected; (b) construction spending declined in May, and (c) the data on realc ontrac ts to p urc hase hom es d rop pe d in Ma y to the lowest level on rec ord d ating from 2001. Thisinformation could prompt consumers to cut back spending on energy products or forgoingvac a tions du ring this time w hen o il and g as usag e typ ica lly inc reases.

Oil prices also fell as concerns eased over the possibility of a tropical storm in the Gulf of Mexicod isrupting supp lies. The storm m issed the ma in oil-produc ing a rea s in the Gulf and has spa red oilinsta lla tions from dam ag es.

Further, US we ekly supp ly rep ort showed wea k dema nd for c rude oil. The US Energy Informa tion

Administration (EIA) said that gasoline stockpiles jumped by 500,000 barrels, surprising analysts whoexpe c ted a d rop o f 400,000 ba rrels. Distillates, used to m ake he a ting oil and diesel, inc rea sed by2.5 million b a rrels, ab ove ana lyst s forec ast of 1.3 million-ba rrel increa se.

Ana lysts said the ma in foc us for the e nergy m arket w ill switc h to the we ekly EIA o il inventory repo rts.Crude oil prices have retreate d almost 10 percent from the e nd of M arch, d isplaying fea rs for thepa c e o f the ec onom ic reco very. However, the U.S. hurrica ne sea son c ould p rovide some supp ortto the ene rgy market a nd ho ld c rude oil p rices in the $70-$80 pe r ba rrel range in the nea r term.

FOREX: Month-to-da te a verage value of pe so a ga inst the US do llar de prec iated by P0.17 fromP46.32/ $ in July to P46.50/$ a s of 2 July 2010.


DOMESTIC OIL PRICES

The oil com pa nies implemente d a rollba c keffective 05 July 2010 of P0.50/l for gasoline andP0.75/ l for diesel. This b rings a to ta l net inc reaseof P2.25/ l for ga soline and d iesel.

LPG d ec reased by P2.26/kg o r P24.86/ 11-kgsta rting 2 July 2010. This ad justm ent reflec tedthe de c line in CP for July.

For more informat ion, cal l theDepartment of Energy:


SMS: (0915) 4469421

Email: [email protected]: http: / /www.doe. ov.ph


Diesel 38.60 33.15-35.35 34.00Gasoline 48.34 41.70-44.00 43.50

E10 41.45-46.77

Auto LPG 25.56-26.56


Products


2010

P/liter


25/50

OIL MONITORAs of 29 June 2010

WORLD OIL PRICES (For June 21 25, 2010 trading days)Month-to-date average price of Asian Dubai crude is lower than May average by nearly $3/bbl.MOPS ga soline is lowe r by ab out $2/bb l while d iesel is higher by a bo ut $1/b bl.

Oil prices initially we nt up on the first trad ing d ay a nd grad ually d ec rea sed over the ne xt trad ingdays of the week. None theless, averag es rema in higher than last we ek.

On Monday, 21 June 2010, prices extended the previous weeks increases of more than fourpe rc ent, as China's de cision to a llow its c urrenc y to a pp rec iate b oosted investor co nfide nce , andon expe c tations of higher dema nd from Chinese c onsumers. China anno unce d e arlier that it willtake steps to end the yuan's two-year peg to the dollar and allow the Chinese currency to trademo re freely. As ma y be rec alled, China has kept the yua n's va lue artific ially low since 2008.

How eve r, price s fell Tuesday and onw ards through t he w eek, as investors we ighed the e ffec ts ofChinese C entral Banks announce me nt tha t it would allow a mo re flexible yuan c urrency. Analystssa id, oil p rices retreate d o n signs tha t any streng thening o f the yuan w ould b e g radual.

Other reasons be hind the g rad ual de c rea ses on the succ eed ing trad ing da ys are the follow ing:

The unexpe c ted grow th in US c rude supp lies. US Energy Informat ion Ad ministration c rude o ilsupp lies increased by 2 million ba rrels last week c ont rary to a na lyst s expe c ta tion of a drop instockpiles.

A c ourt ruling lifting the US go vernment's six-month ba n on d ee pw ater drilling in the Gulf ofMexico . Washington is ap pe a ling the ruling. If it sta nds, more supplies of c rude may b ec om eava ilab le, whic h would soften pric es.

US gove rnment's repo rt that new hom e sa les sank to the low est level on rec ord in Ma y,indica ting tha t ec ono mic rec ove ry is still in low gea r. This means oil dem and is go ing to b eweak.

Last w eek (21-25 June) mo nitoring, Dub ai c rude a t $75.16/b bl is $0.09/b bl highe r than p reviouswee k. Similarly, MO PS gasoline is higher by $0.11/bb l at $84.99/b b l; d iesel a lso rose b y $1.67/ bb l to$89.44/ bb l.

FOREX: Month-to-da te a verage value of pe so a ga inst the US do llar de prec iated by P0.68 fromP45.63/$ in May to P46.31/$ a s of 28 June .


DOMESTIC OIL PRICES

The o il c om panies dec rea sed their pric es forregular ga soline (81 RON) b y (P0.25/ l) while thep ric e fo r diesel wa s increa sed by P0.50/ l,effec tive 29 June 2010. There was no a djustme ntma de o n gasoline with 91RON. The tota l netincrease this month of unleaded gasoline isP2.75/ li, die sel is P3.00/ l.

LPG prices, on the other hand, remain the samesince 01 June 2010, having a total net decreaseof P2.23/kg this yea r.

For more informat ion, cal l theDepartment of Energy:


SMS: (0915) 4469421

Email: [email protected]: http: / /www.doe. ov.ph


Diesel 38.85 33.40-35.60 34.25Gasoline 49.34 42.20-44.50 44.00

E10 41.95-47.27

Auto LPG 25.56-26.56


Products

As monitored, shown below are the retail prices in Metro Manila beginning 29 Jun2010

P/liter


26/50

OIL MONITORAs of 22 Jun 2010

WORLD OIL PRICES Month-to-date average price of Asian Dubai crude is lower than May

averag e by nea rly $3/ bb l. MOPS ga soline is low er by ab out $2/b b l; d iesel also d ec rea sed by

nearly $3/bbl.

Oil p ric es we re rec uperating ove r the whole pe riod last wee k. The p rice rally on Mond ay wasreportedly in line with the recovery in equity markets, which inclined investors to book for

profits, and the weaker dollar resulting from the expansion of industrial production in theeurozone , whic h has been ba ttling a budge t-de fic it c risis.

The m arket rec eived a b oo st a fter the Europe an Union rep orted tha t industria l p rod uc tion inthe 16-nation eurozone grew by 0.8 percent in April from the March level and was up 9.5perce nt on a 12-month b asis.

By m idw ee k, pric es were further lifted by a surprise d rop in US gasoline invento ries by 600,000barrels to 218.3 million ba rrels tha t stoked dem and hopes for US, the w orld's b iggest energy-

c onsuming na tion. The m arket c losely wa tc hes the levels of US gasoline reserves during t hepea k mo nths of the c ountry's summ er holiday driving sea son to g auge de ma nd .

On the c ontrary, the US Departme nt o f Energy reported an unexpe c ted rise in c rude reserves,up 1.7 million b a rrels to 363.1 million ba rrels in the we ek e nd ing June 11. The increa se surprisedmo st ana lysts, whose a verage fo rec ast wa s for a d ec line o f 1.3 million b a rrels. This wa s,

however, due to a big drop in refinery utilization to 87.9 percent of capacity from 89.1 inp revious week, thus, bringing a bout c onc erns on future prod uc t supply.

Moreo ver, ana lysts sa id forecasts for an a c tive hurric ane a re p ushing up p ric es. Hurric anesimpact gas prices because they can shut down oil platforms and production facilities,

a ffec ting supplies and pric es.

Last we eks mo nitoring showe d the a verage pric e o f Duba i crude increased by a bo ut $3/ bb lversus p revious we ek. MOPS gasoline and d iesel also rose b y nea rly $4/ bb l in the same period .

FOREX: Month-to-da te a verag e va lue of peso a ga inst the US dolla r dep rec ia ted by P0.77 from

P45.63/$ in May to P46.40/$ as of 21 June .

Other recom mend ed reference sites:(1) http:/ / ww w.aip.com .au/p ricing (2) http:/ / www .med.gov t.nz/ ers/ oil_pet/ price s/ pric es.html

DOMESTIC OIL PRICES

Gasoline and diesel increased by P1.00/litereffe c tive 22 June 2010. This b rings a t ota l net

increase of P2.75 and P2.50, respectively, forthe yea r.

The d om estic p ric e o f LPG remains the samesince 01 June 2010, having a total net

decrease of P2.23/kg this year.

For more information, call theDepartment of Energy:Pricing: 840-2187LPG: 840-2130

Fuels: 840-5669


Calculated Price Price Range Common

based on Announced Adj. Price

Diesel 37.86 33.40-35.60 34.25Gasoline 47.84 42.20-44.50 44.00

E10 41.95-47.27

Auto LPG 25.56-26.56

LPG, P/11-kg 576.50-651.50

Products


beginning 22 Jun 2010

P/liter


27/50


WORLD OIL PRICES Month-to-date average price of Asian Dubai crude is lower than Mayaverag e b y nea rly $4/ bb l. Simila rly, MOPS ga soline a nd d iesel also d ec rea sed by ab out $4/b b l.

Asian benc hma rk Duba i and MOPS slipped by ab out $4/bb l Monday, tra iling t he p ric e slides inEurope a nd US benc hmarks Brent and WTI, as the ma rket worries about the poo rer-than-expec ted US em ployme nt figures relea sed in p rev ious we ek. Strong er dolla r aga inst euros andothe r currenc ies a lso und ersc ored the p ric e slide.

While oil p ric es see sawed in the follow ing trad ing days, pric e postings during the we ek gene ra llyswung upwa rd (tho ugh the levels we re still low er than the previous we ek). The p ric e up tick wa sinitially in view of the markets reaction to the comment of Federal Reserve Chairman BenBernanke saying tha t the US ec onom ic rec overy rem a ins on trac k. Europea n de bt c risis a lso islikely to ha ve o nly a mo dest impa c t on t he U.S. rec ove ry.

Prices were further boosted by reports on Wednesday showing a bigger-than-expected drop inUS sup p lies and the p ositive ec onomic d a ta from China . Chinese exports surged nea rly 50% inMay compared to a year earlier, widely beating expectations, according to a China Dailyrep ort. Meanwhile, imp orts jumped 48%. This shows tha t China is imp orting more c rud e, andthus moving p ric es up .

Most a na lysts expe c t o il pric es to rem ain a bove $70 for the rest o f the yea r, assuming the eurozone 's deb t c risis doe sn't worsen. How eve r, if a me ltd ow n in Europ ea n ec ono my c an beavoided, pric es c ou ld be see n in a $70 to $80 a barrel range. This is c onsistent w ith OPEC sac c ep table pric e rang e of $70 to $80.

Meanwhile, the recent OPEC monthly demand outlook saw world demand at 85.37 millionbarrels per day, or one percent more than in 2009. OPEC said that while there were signs ofde ma nd picking up, the Europ ea n d eb t c risis, an o versupp ly of c rude and the p otentia l c oo lingof China's ec onom y could slow d em and .

Last weeks monitoring showed the average price of Dubai crude decreased by about $1/bblversus prev ious we ek. MOPS gasoline and d iesel also d ec lined b y nea rly $1/ bb l in the sameperiod.

FOREX: Month-to-da te a verag e va lue o f peso a ga inst the US dolla r dep rec ia ted by P0.94 fromP45.63/$ in May to P46.57/$ as of 14 June .


DOMESTIC OIL PRICES

Price s of regular gasoline (81 RON) a nd d ieseldecreased by P0.50 and P0.25 per liter,respec tively, effe c tive 15 June 2010. As suc h,the to tal net increase this month of unlead edgasoline rema ins a t P1.00/ l, wh ile d iesel a tP0.75/ l.

Calculated Price Price Range Commonbased on Announced Adj. P

Diesel 37.86 32.40-34.60 33.50Gasoline 47.84 41.20-43.50 43.00

E10 40.95-41.27

Auto LPG 25.56-26.56LPG, P/11-k

rice

g 576.50-651.50

Products



P/liter

The dom estic p ric e o f LPG rema ins the samesince 01 June 2010.


28/50


WORLD OIL PRICES Month-to-date average price of Asian Dubai crude is lower than Mayaverag e b y more tha n $3/ bb l. Simila rly, MOPS ga soline a nd d iesel also d ec rea sed by nea rly

$4/bbl.

Early last weeks trading showed that Chinas Purchasing Managers Index fell to 53.9 in Mayfrom 55.7 in April, as exhibited by the report of the Federation of Logistics and Purchasing.China is the wo rld s sec ond la rge st energy c onsume r beh ind the U.S., and thus a red uc tion inec onomic indic es de ep ly affects the oil de mand and hence price of c rude in the ma rketplac e.Consequently, global stock markets dropped and the dollar strengthened against the euro,damp ing investor dem and for riskier assets suc h a s c om mo d ities, which now a lso inc ludes oil.

Howe ver, oil p rice s (particularly WTI) rose Wednesday, as the U.S. ho me -resa le exceed edestimates in Ap ril. Asian b enc hma rks (Duba i and MOPS) follow ed in the last tw o t rad ing days ofthe week as they posted more tha n $3/b b l higher. The rea sons behind the recent p ric e

reb ound s were rep ortedly due to the follow ing:

US la test home -resa le ind ex c limb ed six percent, the highest leve l sinc e Oc tober lastyear, which b olstered o ptimism tha t the ec onom ic rec overy will ac c elerate .

US Energy Info rma tion Administrat ion d isc losed surge in fuel c onsumption in the lastweek of May, as stocks of crude oil shrank by 1.9 million barrels; gasoline inventoriesa lso fe ll by 2.6 million b arrels.

Initia l job less c laims in the US fell by 10,000, as relea sed by the Labor Dep a rtment. News that the federal government will stop all new drilling in the Gulf of Mexico,

following the w orst c rud e sp ill in Am eric an histo ry. The m oratorium on new d rillingcould slow oil production in the Gulf and boost oil prices at least in the short term.Betwe en 80 million lite rs and 175 million lite rs of o il ha s spew ed into the Gulf from the 6-we ek-old sp ill, (US governme nt estima tes).

Per DOE monitoring last w eek, the a verag e p ric e o f Duba i crude inc rea sed by ab out $4/b b lc om pared to p revious we ek. MOPS gasoline a nd d iesel also rose b y more than $3/ bb l in thesam e p eriod .

FOREX: The m onth-to-da te a verag e va lue o f peso a ga inst the US dolla r dep rec ia ted by P0.85from P45.63/$ in May to P46.48/$ as of 7 June.


DOMESTIC OIL PRICES

The oil c om panies imp lem ente d a P1.00/ literincrease in the prices of gasoline and dieseleffec tive today, 8 June 2010. The a d justme ntreflect the price adjustments in theinternational market last week over thepreced ing week.

Calculated Price Price Range Commonbased on Announced Adj. P

Diesel 38.10 32.65-34.85 33.50Gasoline 47.84 41.20-43.50 43.00

E10 40.95-41.27

Auto LPG 25.56-26.56LPG, P/11-k

rice

g 576.50-651.50

Products



P/liter

The dom estic p rice of LPG rema ins reflec tiveof its ad justme nt e ffec ted on 01 June 2010.


29/50

OIL MONITORAs of 01 June 2010

WORLD OIL PRICESMonth-to-da te a verage price o f Asian Dubai c rude is lower than Ap ril average byabout $7/b b l. Similarly, MOPS ga soline d ec rea sed nea rly $9/ bb l; d iesel also slipped month-on-

mo nth b y nea rly

Oil Monitor 2010

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Transcript of Oil Monitor 2010