Perez hails OPEC move to hike output

Energy Secretary Vincent S. Perez welcomed yesterday recent decision of the Organization of Petroleum Exporting Countries (OPEC) to pump an additional one million barrels of crude oil per day (b/d).

"The increase in production volume is a welcome relief for us. This could eventually bring world prices back to a more comfortable level," Perez said.

In a meeting last Wednesday in Vienna, OPEC agreed to raise to 27 million b/d the production level beginning November this year to stem rising prices.

World oil prices peaked at all time-highs due to a confluence of events such as the tension in the Middle East, terrorist attacks, rapid economic growth in the Asian economies and decreasing spare capacity.

Perez pointed out that any softening of global oil prices will eventually be reflected in local pump prices.

World oil prices have started to ease. Dubai crude average for September is now $34.95 per barrel, shedding $3.60 from last month’s average. MOPS-based unleaded gasoline has dropped to $47.99 per barrel from $51.50 in August.

Given the dramatic decreases in world oil prices, Secretary Perez stressed that oil firms are not expected to adjust pump prices for the rest of September.

Perez noted that MOPS-based diesel, which is used by importers as benchmark in pricing, is still on the upward trend at $52.86 per barrel from $51.66 a month ago.

If the downward trend will be sustained in the coming weeks, Perez said consumers will also feel downward adjustment in pump prices.

In the meantime, the energy chief called on consumers especially the transport groups to be more patient and cooperate with the government in seeking ways to cushion any impact of oil price hikes.

Perez said the Energy Department will closely watch the developments in the international and local oil markets to ensure that consumers are protected from high prices.