From the 2007 opening crude prices of $54.23/bbl for Brent, $54.17/bbl for WTI and $51.69/bbl Dubai, the three major reference crude p rices rose $3 to $5/bbl range to average at $57.94, $59.20 and $55.75/bbl respectively in February 2008.

Crude prices continued the upward stance in March 2007 with a full month average of $58.80 and $62.42/bbl for BRENT and WTI respectively. Asian reference crude picked up almost $3/bbl to close March average at $58.80/bbl.

In tandem with crude price behaviour, MOPS prices in Singapore for almost all products increased in March compared to the first two months of 2007. Crude and product prices' bullish performance towards the end of the 1Q2007 was influenced greatly by geopolitical reasons namely;

1. International tension over Iran's nuclear power program, inspite of the US government pronouncement that it would continue to pursue diplomacy in its efforts to resolve dispute over Iran's nuclear ambition.

2. Related to the foregoing, Iran is limiting its cooperation with the International Atomic Energy Agency (IAEA) after the UN Security Council voted new sanctions over Iran's nuclear program.

3. Growing tension around Iran's capture of 15 UK Naval personnel charged with illegal entry in Iranian waters.

4. Prolonged strike at France's Fos. Lavora oil hub, one of the world's largest.

Market driven parameters likewise influenced price behaviour towards the end of the first quarter, e.g.:

1. Product prices especially rising gasoline prices in anticipation of a driving season in the US continue to support the bullish trend in crude prices.

2. The International Energy Agency (IEA) forecasts 2007 world oil demand to average 86 million barrels per day or 1. mmbpd (1.8% increase) compared to 2006.

3. Refining sector worldwide is reeling from underinvestment in the past two decades, curbing availability of light petroleum products resulting in the operating but less efficient refineries to produce more expensive distillates.

March 2007 is characterized by ICE Brent and NYMEX WTI futures appear disconnected for the first time i.e. WTI less priced than Brent. This trend appears to be continuing in the first half of April. Analysts attribute this to the talk of tightness of crude supply in the North Sea in contrast to excess supply in the US Mideast, one of the US biggest markets.

LPG contract price for March 2007 averaged $506.MT or $20/MT lower compared to month ago level of $526/MT. However, April contract price increased by almost $14/MT to average $540/MT. This increase has been gradually reflected in the LPG domestic prices.