hankyoreh

International crude oil prices are expected to top US$65 per barrel in the third quarter, spurred by strong demand for refined products, the state-run oil company said Friday.

The Korea National Oil Corp. (KNOC) said local experts predict that demand-side pressure will cause Dubai Crude prices to rise, despite more output by non-Organization of Petroleum Exporting Countries.

The average price of Dubai Crude, which makes up the bulk of South Korea's oil imports, was slightly more than $59 per barrel from January through early June. However, prices climbed to $63.98 in April and over $64 in May. In 2006, the average price of the Dubai Crude stood at $61.55, up sharply from $49.37 in the previous year.

The KNOC said there are indications that demand for gasoline may remain strong in the July-September period, leading to higher crude prices.

On the positive side, the oil company said that with a steady increase in production, but decreased demand for certain refined fuel products going into winter, prices could ease back to $65 per barrel in the fourth quarter.

High oil prices adversely affect economic conditions in South Korea, which imports most of its crude oil from abroad. In 2006, the country imported $77.4 billion worth of crude oil, liquefied natural gas and petroleum products. Crude oil imports stood at $55.9 billion in 2006, up 31.3 percent from the year before.

SEOUL, June 29 (Yonhap News)