High Crude Oil price is a headache for South Korea
High Crude Oil price has emerged as a new risk factor for the South Korean economy.
Global Crude Oil prices were expected to fall in 1-H of this year on the slowdown in Global economic growth, but prices for Dubai Crude, South Korea's benchmark, stayed above the 100 bbl level this year due to ample liquidity and geopolitical risks in Iran.
According to the Korea National Oil Corp. (KNOC), prices for Dubai crude oil closed at 121.57 bbl Friday, + 1. 35 from Thursday's close.
The average price for Dubai Crude moved from 78.13 bbl in Y 2010 to 105.98 bbl in Y 2011 due to social unrest in the Middle East and North African (MENA) region.
Dubai Crude Oil prices remain at a higher level of 112.33 bbl on average in Y 2012 despite expectations that the price could have dropped below the 100 bbl mark on weak demand for Crude Oil on slowing Global economic recovery.
Confrontation between Tehran and the Obama administration triggered the persistent rise in Crude Oil prices, which are now projected by some to rise to more than 150 + bbl.
The Ministry of Knowledge Economy forecast the Dubai Crude Oil price may rise to over 130 bbl if concerns over Iran's nuclear ambitions persist.
Paul A. Ebeling, Jnr.
Paul A. Ebeling, Jnr. writes and publishes The Red Roadmaster's Technical Report on the US Major Market Indices, a weekly, highly-regarded financial market letter, read by opinion makers, business leaders and organizations around the world.
Paul A. Ebeling, Jnr has studied the global financial and stock markets since 1984, following a successful business career that included investment banking, and market and business analysis. He is a specialist in equities/commodities, and an accomplished chart reader who advises technicians with regard to Major Indices Resistance/Support Levels. www.livetradingnews.com