Dubai crude prices may hover at US$50 per barrel in 2009: report

SEOUL, Dec. 31 (Yonhap) -- The price of Dubai brand crude is expected to hover at
around US$50 per barrel next year as sluggish economic growth affects
consumption, a state-run energy think tank said Wednesday.

The report by the Korea Energy Economic Institute (KEEI) said the average price
for the Middle East benchmark crude may reach $51.9 for the whole of 2009. This
is lower than the $60 per barrel estimated by experts from the government, the
Korea National Oil Corp., KEEI, the Bank of Korea and civilian laboratories
earlier in the month.
Dubai crude prices reached an average of $97 per barrel this year from $68 for
the whole of 2007.
"The adjustment in numbers reflects a continuous downgrading of growth forecasts
by governments around the world in recent weeks," said a researcher. He, however,
stressed that because there are too many variables, even the latest estimate will
likely be revised.
He said based on current data, the Dubai crude, which make up the bulk of local
imports, may dip to $40 per barrel levels in the first half before rising to $60
from June to December as countries makes a slow comeback.
The expert, however, said that if the global economy makes a faster-than-expected
comeback, the average price per barrel may hit $67.9.
yonngong@yna.co.kr
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