Crude prices likely to stabilize in Q4: experts By By Lee Joon-seung

SEOUL, Sept. 24 (Yonhap) -- A drop in overall demand for crude oil caused by the worldwide economic slowdown and greater production is expected to help stabilize oil prices in the fourth quarter, civilian and government experts said Wednesday.

Experts said at a meeting held at the Korea National Oil Corp. (KNOC)
headquarters that spot prices of Dubai crude will likely hover around US$100 per
barrel after surging to over $140 per barrel earlier in the year.
The price of Dubai crude, the country's benchmark, is critical to South Korea,
which imports the bulk of its crude oil from the Middle East.
If prices can be maintained at this level, annual prices for a barrel of imported
crude imported could reach $105, which is $5 less than previously predicted, they
said.
"The sluggish global economy and moves by the government not to subsidize fuel is
affecting consumption, which is exerting downward pressure on prices," a source
at the Ministry of Knowledge Economy said.
He added that higher prices are causing governments and people to use less
energy, while tightening oversight on speculators that fueled prices has started
to exert a stabilizing influence on the market.
The experts, however, said that the winter heating demand, coupled with a
possible production cut by the Organization of Petroleum Exporting Countries
(OPEC), could contribute to pushing up oil prices, especially since oil reserves
are below 2007 levels.
The meeting was attended by government policymakers, KNOC officials, experts from
the Korea Energy Economic Institute (KEEI), the Bank of Korea and analysts from
private think tanks.