10 June 2014

Regional Petroleum Fuel and Gas Price Review – June 2014

WHATS INSIDE:

1.0 World Market Movement

2.0 Asia mogas (gasoline 97, 95 & 92 RON)
3.0 Asian jet fuel /kerosene
4.0 Diesel (Gasoil 10, 50 & 500 ppm)
5.0 Saudi Aramco Liquefied Petroleum Gas (LPG) Prices (propane & butane) contract price
6.0 Singapore-Australia Clean Tanker Freight Rates
7.0 Exchange Rates
Annex: Graphs

SPC Petroleum Advisory Service has prepared a petroleum product price review for June 2014 which
analyses daily Mean of Platts Singapore (MOPS) published prices for May 2014. This review also
includes benchmark Saudi Aramco LPG prices (sourced from Gas Energy Australia).
1.0 World Market Movement

Oil prices rose marginally month‐on‐month in April, supported by continued tensions between
Russia and the Ukraine, supply outages in OPEC and non‐OPEC countries and stepped up crude
buying as refiners complete seasonal turnarounds. Dated Brent crude price continued to strengthen
in May which saw an increase by 1.03% and month average at USD108.70/bbl. The East of Suez
market for low-sulfur crudes remained supported while Asia saw weak product margins especially
for middle distillates and a tight regional supply (Source: Platts).

2.0 Asia mogas (gasoline 97, 95 & 92 RON)

Price of Asian gasoline continued to increase in May due to stable demand from the Middle East.
3.0 Asian jet fuel/kerosene
Asian jet fuel/kerosene price decreased due to sluggish end-user demand and amply supply in the
region.

4.0 Diesel (Gasoil 10, 50 & 500 ppm)

Asian gasoil prices dropped this month due to heavy supplies and thin demand within the Asia
Pacific region.

5.0 Saudi Aramco Liquefied Petroleum Gas (LPG) Prices (propane & butane) contract price
State-run Saudi Aramco has increased its June contract price for propane to $835 a tonne, up $25
from the May level. Butane prices for June 2014 were set to $835 a tonne, up $10 from May level of
$825. The prices provide a benchmark against which Middle East sales of liquefied petroleum gas
(LPG) to Asia are priced. Following is a table of Saudi Aramco's contract prices of propane and
butane per tonne in U.S. dollars.

HEADQUARTERS: SECRETARIAT OF THE PACIFIC COMMUNITY, PO BOX D5, NOUMEA CEDEX, NEW CALEDONIA
SERVICES SIEGE DE L’ORGANISATION: SECRÉTARIAT GÉNÉRAL DE LA COMMUNAUTÉ DU PACIFIQUE, B.P. D5, NOUMÉA CÉDEX, NOUVELLE-
CALÉDONIE
CABLE ADDRESS: ‘SOUTHPACOM’, NOUMEA, TELEPHONE: (687) 263818, TELEX: 3139 NM SOPACOM
ADDRESSE TÉLÉGRAPHIQUE: ‘SOUTHPACOM’, NOUMÉA, TÉLÉPHONE: (687) 262000, TÉLÉCOPIEUR: (687) 263818, TÉLEX: 3139 NM SOPACOM
Table 1.0 Monthly average of Saudi Aramco LPG (propane and butane) contract prices
Monthly average of Saudi Aramco Butane and Propane prices
Propane (UDS/T) Butane (USD/T)
June Average 835.00 835.00
May Average 810.00 825.00
Difference (June avg. – May avg.) 25.00 10.00
% Change 3.09 1.21

Table 2.0 Monthly averages of daily Mean of Platts Singapore prices and Singapore-Australia Clean tanker points;

Monthly average of daily Platts Singapore prices

Mogas 97 Mogas 95 Mogas 92 Kerosene Gasoil 10ppm Gasoil 50ppm Gasoil 500 ppm Dated Brent Singapore –
(ULP) (ULP) (ULP) USD/bbl (Diesel) (Diesel) (Diesel) USD/bbl Australia 30kt
USD/bbl USD/bbl USD/bbl USD/bbl USD/bbl USD/bbl Clean Tanker(pts)
May
122.53 121.43 117.94 119.88 123.30 123.01 122.35 108.70 173.89
Average
April
122.44 121.39 117.64 120.56 124.27 123.96 122.90 107.58 165.60
Average
Difference
(May avg. – April 0.10 0.04 0.30 -0.68 -0.97 -0.96 -0.55 1.11 8.29
avg.)
% Change 0.08 0.03 0.25 -0.56 -0.78 -0.77 -0.45 1.03 5.01

6.0 Singapore-Australia Clean Tanker Freight Rates

The freight market strengthened in May, resulting in an increase in the overall freight component in this month’s prices. East of Suez, spot freight rates on reported
route Singapore to Australia increased by 5.01% from last month. The Singapore –Australia route was assessed at 173.89 WS points, an increase of 8.29 WS points
from the previous month.

HEADQUARTERS: SECRETARIAT OF THE PACIFIC COMMUNITY, PO BOX D5, NOUMEA CEDEX, NEW CALEDONIA
SERVICES SIEGE DE L’ORGANISATION: SECRÉTARIAT GÉNÉRAL DE LA COMMUNAUTÉ DU PACIFIQUE, B.P. D5, NOUMÉA CÉDEX, NOUVELLE-CALÉDONIE
CABLE ADDRESS: ‘SOUTHPACOM’, NOUMEA, TELEPHONE: (687) 263818, TELEX: 3139 NM SOPACOM
ADDRESSE TÉLÉGRAPHIQUE: ‘SOUTHPACOM’, NOUMÉA, TÉLÉPHONE: (687) 262000, TÉLÉCOPIEUR: (687) 263818, TÉLEX: 3139 NM SOPACOM
7.0 Exchange Rates:
All major currencies including the Australian, Euro, New Zealand, Pa’anga and Kina depreciated against the US dollar from the average rate in April. The Fijian
dollars appreciated against the US dollar while the Samoan Tala, Solomon dollar, Vatu and XPF remained relatively stable.

Table 3.0 Monthly averages of currencies against the US Dollar

Monthly average of currencies against the US Dollar

Australian Euro Fijian Kina New Zealand Samoan Solomon Tongan Vatu XPF
Tala Pa’anga
*Exchange *Exchange *Exchange *Exchange *Exchange *Exchange *Exchange *Exchange *Exchange *Exchange
rate (AUD to rate (Euro to rate (FJD to rate (Kina to rate (NZD to rate (WST to rate (SBD to rate (TOP to rate (Vatu to rate (XPF to
USD @) USD @) USD @) USD @) USD @) USD @) USD @) USD @) USD @) USD @)
May
0.9303 1.3742 0.5426 0.3461 0.8604 0.4237 0.1357 0.5386 0.0105 0.0115
Average
April
0.9314 1.3806 0.5420 0.3532 0.8609 0.4237 0.1357 0.5446 0.0105 0.0115
Average
Difference
(May avg. – -0.0011 -0.0064 0.0006 -0.0071 -0.0005 - - -0.0060 - -
April avg.)
% Change -0.12 -0.46 0.11 -2.01 -0.06 - - -1.10 - -
Exchange rates from www.oanda.com
Net Result:
Regional gasoline prices will slightly increase as Singapore prices for gasoline increased. However regional gasoil and kerosene prices are expected to slightly
decrease as Singapore prices of gasoil and kerosene decreased. Depreciation of the Australian, Euro, New Zealand, Pa’anga and Kina currencies together with
increase in freight rates will put an upward pressure on gasoil, gasoline and kerosene prices in those countries. Appreciation of Fijian dollar and together with fall in
petroleum product price of gasoil and kerosene will result in kerosene and gasoil prices to slightly decrease. The Samoan Tala, Solomon, Vatu and XPF remained
unchanged against the US dollar. Furthermore regional LPG prices will slightly increase as Saudi Aramco's contract prices of propane and butane increased in June.

The Secretariat looks forward to any feedback on this submission.

Sincerely

Pritanshu Singh[Ms]
for Petroleum Adviser

Secretariat of the Pacific Community, 2014

Annex 1

Source: Platts Asia-Pacific/Arab Gulf Marketscan

Source: Platts Asia-Pacific/Arab Gulf Marketscan

HEADQUARTERS: SECRETARIAT OF THE PACIFIC COMMUNITY, PO BOX D5, NOUMEA CEDEX, NEW CALEDONIA
SERVICES SIEGE DE L’ORGANISATION: SECRÉTARIAT GÉNÉRAL DE LA COMMUNAUTÉ DU PACIFIQUE, B.P. D5, NOUMÉA CÉDEX, NOUVELLE-
CALÉDONIE
CABLE ADDRESS: ‘SOUTHPACOM’, NOUMEA, TELEPHONE: (687) 263818, TELEX: 3139 NM SOPACOM
ADDRESSE TÉLÉGRAPHIQUE: ‘SOUTHPACOM’, NOUMÉA, TÉLÉPHONE: (687) 262000, TÉLÉCOPIEUR: (687) 263818, TÉLEX: 3139 NM SOPACOM
 Source: Platts Asia-Pacific/Arab Gulf Marketscan

Source: Platts Asia-Pacific/Arab Gulf Marketscan

Secretariat of the Pacific Community, 2014

 Source: Platts Asia-Pacific/Arab Gulf Marketscan

*Note: Platts has lowered the sulphur specification of its flagship Singapore Gasoil assessment to 500 ppm from 0.5% (5,000 ppm) on
January 2, 2013, hence the reason why gasoil 500ppm and gasoil prices are the same from January 2, 2013.

Source: Platts Asia-Pacific/Arab Gulf Marketscan

*Note: Dated Brent crude oil used for calculating refiners margin.

Secretariat of the Pacific Community, 2014

 Source: Platts Asia-Pacific/Arab Gulf Marketscan

Source: Gas Energy Australia

Secretariat of the Pacific Community, 2014

 Source: Platts Clean Tankerwire

*Note: Exchange rates sourced from www.oanda.com

Secretariat of the Pacific Community, 2014

Secretariat of the Pacific Community, 2014
Data Sources:
1. Exchange rates is sourced from www.oanda.com
2. LPG price is sourced from http://gasenergyaustralia.asn.au/
3. Prices for diesel, gasoline and jet/kerosene prices are provided by Platts (The McGraw-Hill Companies, Inc).

Abbreviations

bbl Barrel
ppm Parts per million
RON Research Octane Number
T Tonne
USD/bbl US dollars per barrel

Secretariat of the Pacific Community, 2014