MANILA, Aug 22 (Reuters) - The Philippines said on Thursday it expectsprices of coconut oil in the world market to hit $500 per tonne CIF withan anticipated decline in production output in the country, the world'slargest shipper of the commodity.Danilo Coronacion, administrator of the Philippine Coconut Authority,told reporters that output of copra, or dried coconut flesh from which oilis extracted, is expected to fall to 2.3 million tonnes this year from2.85 million tonnes in 2001.Copra output would fall further to 1.5 million tonnes in 2003."There is a possibility it (coconut oil) might hit $500/tonne CIF dueto anticipated low production in the Philippines, global shortage insupply of fats and oil, and the anticipated decrease in supply in palmoil," Coronacion said.Coconut oil was quoted at $442.50/tonne CIF in Europe as of Wednesday.Analysts have said coconut trees produce smaller and fewer nuts aftertwo years of good output.