Government economic planners are crossing their fingers that the downward spiral in the price of oil in the world market would continue until the end of the year, or at least remain below $100 per barrel from a high of more than $147 in July.

But Trade and Industry Secretary Peter Favila cautioned that the situation in the global oil market remains unpredictable and requires careful and sustained watching. For the first time since April, world price of oil crashed below $100 a barrel Tuesday, but rebounded overnight above $100 after the Organization of Oil Exporting Countries (OPEC) cartel announced a production cut of 520,000 barrels a day. At a press briefing with Press Secretary Jesus Dureza in Malacanang this morning, Favila said the government is trying to "manage expectations" of lower oil prices but price movements remain erratic. But he said that oil "prices seem to soften and at least we are expecting this would be sustained until the end of the year." While the demand for specific items including chicken, salad dressing and noodles increase during the Christmas season, people can expect no drastic price surges of food products if oil prices take no sudden spurts, Favila said. He said the DTI had launched, in partnership with 17 manufacturing firms, a "Diskwento nga Bayan" program under which commodities are sold at discounted rates ranging from a low of10 percent up to 70 percent. Launched at the DTI compound in Makati City, the pro-consumer project will make its presence felt in other places in Metro Manila. Prices of the items sold under the program are "pretty good, even pandesal you can get at affordable prices," Favila said. Oil prices in the world market took a dramatic fall below $100 a barrel Tuesday, the lowest in more than five months, but climbed back within hours to $104 after the Organization of Petroleum Exporting Countries (OPEC) clamped down on production by 520,000 barrels a day. In its monthly report, the International Energy Agency (IEA) said the world demand for oil would decline during the rest of 2008 and next year. The IEA report, which came out before the OPEC announcement of a production cut, cited people's changing lifestyles particularly in the United States, as a reaction to the high oil prices.