The Era of $100 a Barrel Looming

Oil prices hit a record high due to growing anxieties about the supply of crude oil in the international market. Experts believe “the era of $100 a barrel” is not too far away.

The Korean won also rose to a 10 year-high against the greenback due to the dollar`s global weakness.

The West Texas Intermediate (WTI) for December delivery closed at $90.46 a barrel on October 25 (local time), up $3.36 from the previous day on the New York Mercantile Exchange, according to the Korea Natural Oil Corporation.

The price of WTI rose once above $92 a barrel in after-hours trading.

The price of Dubai crude oil also hit an all-time high of $80.53 a barrel, up $2.14 from the previous day.

Brent North Sea crude oil for December delivery settled at $87.48, up $3.11 on the ICE Futures Europe exchange in London.

Highflying international oil prices also helped fuel the prices of local oil products, including gasoline and diesel.

Gasoline prices nationwide averaged 1555.09 won per liter during the fourth week of October (22-26), 2.29 won less than the record high of 1557.38 won recorded in the fourth week of July of this year. In particular, the price of diesel rose to a record high of 1339.68 won per liter, up 4.51 won.

In Seoul, the won closed at 909.90 against the dollar, showing a sharp decline of 6.7 won from a day earlier. This is first time that the won closed below 910 to the dollar since September 18, 1997 when the won/dollar rate closed at 909.60.