Crude Oil Prices will Drop in 2012 says Korean Oil Company

Crude oil prices should drop in 2012 compared to the previous year because of the slower growth of the economy. This forecast is based on a Korea National Oil recently released report.

The report, together with the findings of different think tanks of the global energy, expected a decrease in Brent, Dubai and West Texas Intermediate (WTI) crude oil prices for the current year.

Cambridge Energy Research Associates, a consulting company in the United States, said that Dubai benchmark oil prices which comprise 80 percent of the oil imports in South Korea will most likely average at about US$ 103.82 a barrel. This is a drop from the $106.06 oil price per barrel in 2011.

North Sea Brent oil prices will also decline to $107.50 from $111. Furthermore, West Texas Intermediate crude will trade at oil prices of $91 this year versus $94.91 of the past year.

The Center for Global Energy Studies that is based in London also anticipates a drop in future crude oil price history. It said that the Brent, the benchmark used for crude oils in the Atlantic basin, may probably fall to about $107 a barrel during this present year from $112.2 per barrel of the previous year.

However, the Korea National Oil Corp said that the present forecasts points to price rebounds for 2013.

Cambridge Energy Research Associates anticipates the average of crude prices in Dubai to increase to $109.63 a barrel in the coming year with Brent and WTI prices to $113.38 and $107.88 respectively.

By Chris Termeer