OIL MONITOR

As of December 2, 2008

WORLD OIL PRICES. The November average of Asian Dubai crude decreased by about $18/bbl compared to October average.
Likewise gasoline and diesel declined by about $31/bbl and $15/bbl, respectively, over its October averages. For LPG, following the
huge 39% drop in CP from $804/MT in October to $490/MT in November, the December CP further dropped by $154/MT to
$336/MT.

Dubai, at about $42/bbl, was at its lowest level since March 2005. Meanwhile, US’ WTI and Europe’s Brent are now hovering below
$50/barrel, a turn-around from the 9% jump early in the last trading week when it pulled along the surging Wall Street that reacted to
news of U.S. government bailout for Citigroup, and the unveiling by Great Britain of a mammoth financial stimulus package worth 20
billion pounds (US$30 billion).

News that the U.S. government will take a $20B stake in Citigroup and guarantee hundreds of billions of dollars in risky assets
boosted the oil market. But analysts believe it is likely a short-term bump as the stimulus would most likely wear off and the market
will be back to focusing supply and demand. This was observed as prices moved down a day after, falling nearly 7% on the second
trading day last week on news of dwindling economy. The U.S. was said to be heading toward the worst recession in decades,
following the 0.5% drop in federal GDP in the third quarter. It was the worst economic performance since the economy contracted
1.4% in the third quarter of 2001.

The seesawing of prices continued as oil prices rose anew towards the end of last week’s trading as a large interest rate cut in
China and news of a possible Russian output cut appeared to counter another round of gloomy economic news and larger-than-
expected stockpiles in the U.S.

Yet again, oil prices sank Tuesday amid deepening worries about a global slowdown. Analysts state that there is still a fear that the
global economy is in deep trouble and the oil price is simply following downhill.

The price movements of Asian Dubai and MOPS product prices normally follow the trend of WTI and Brent. MOPS diesel remains
more expensive than MOPS gasoline despite the latter’s price dip to its almost five-year low level. Further, gasoline has been
posting lower than Dubai crude since early November.

Meanwhile, international analysts said that OPEC mostly seems powerless to stop the oil demand fall-off from industrialized nations,
which are caught up in the global financial crisis and economic downturn. The informal talk of OPEC Arab members last November
29 in Cairo unlikely resulted in production cuts. Analysts believed that any such move to deal with the plunging price of oil --
$147/bbl in July and now hovering around $50/bbl -- probably won't be made until a larger round of talks are held next month in
Algeria. OPEC leaders said they need more time to study quickly changing data, which continue to show a plunging demand
unaffected by earlier cuts. Some OPEC members, notably countries such as Nigeria and Ecuador, disclosed they can't cut
production any further because tax revenue drop-offs are blowing holes in their national budgets.

Early this week, light sweet crude for January dropped $2.32 to close at $46.95/bbl on the New York Mercantile Exchange. In
London, Brent North Sea crude for January settled $45.44.93/bbl, down $2.53. Meanwhile, November average spot prices of WTI
and Brent declined by about $17/bbl and $19/bbl, respectively, over its averages in October.

Other recommended reference sites:

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

FOREX: The month-to-date average value of peso against the US dollar depreciated by P1.12, from P48.06/$ in October to
P49.18/bbl$ as of end-November.
Ave. Retail LPG - 11kg
DOMESTIC OIL PRICES.
Price as of ULG ADO (dealers’ pick-up price)
Most oil companies rolled back prices of gasoline by P5.00/l and 30-Nov-08 P 35.96 P 35.94 P 391.00 -- 458.00
P2.00/l on diesel effective 29 November. Total reduction for the 28-Oct-08 P 46.96 P 45.94 P 588.00 -- 646.50
month reached P9.00/l on gasoline and P5.00/l on diesel. 30-Sep-08 P 49.96 P 48.94 P 598.00 -- 659.00
29-Aug-08 P 54.96 P 53.94 P 600.00 -- 660.00
In reaction to the decline in LPG CP, the oil companies will implement 30-Jul-08 P 60.46 P 60.02 P 645.00 -- 708.00
a rollback on the domestic price of LPG by P4.00/kg effective 30-Jun-08 P 59.46 P 52.44 P 615.00 -- 671.00
December 3. 27-May-08 P 51.96 P 44.94 P 585.00 -- 628.00
30-Apr-08 P 47.96 P 40.94 P 551.00 -- 597.00
31-Mar-08 P 46.46 P 39.44 P 558.00 -- 603.00
26-Feb-08 P 43.96 P 36.94 P 564.00 -- 609.00
29-Jan-08 P 44.45 P 38.45 P 594.00 -- 650.00
26-Dec-07 P 44.45 P 38.45 P 594.00 -- 650.00
30-Nov-07 P 43.95 P 37.95 P 529.00 -- 602.50

F o r m o re in fo rm a tio n , ca ll th e
D ep a rtm e n t o f E n e rgy : S M S : (0 91 5 ) 44 694 21
P ric ing : 8 40 -218 7 E m a il: o ilm on ito r@ d o e .g o v .p h
L P G : 8 40 -213 0 W eb s ite : h ttp ://w w w .d o e .g o v .p h
F u e ls : 840 -56 69