Dubai crude sells at post-war high

As international oil prices continue to go up, Dubai crude oil, which accounts for 70 percent of the nation`s total consumption, recorded its highest price since the 1990 Persian Gulf War.

The sharp rise in international crude prices is expected to affect adversely the domestic economy by aggravating the trade account following the drastic increase in the expenses for oil imports.

According to the Korea National Oil Corp.(KNOC) and other industry sources Tuesday, the Dubai crude price rose to US$28.93 per barrel from US$25.88 last Friday by the standard of that for delivery in October. This exceeded the year`s high of US$28.91 on March 7 and was the highest since US$31.51 in October 1990 during the Gulf War.

Brent oil from the North Sea also recorded a high since the war at US$34.68 per barrel by the standard for that to be delivered in September. It exceeded this year`s high of US$33.67 on Aug. 18 by more than US$1.

West Texas Intermediate recorded US$32.87, approaching the year`s high of US$34.75 on July 23.

The upward trend of international crude prices was attributed to the unclear prospect for production increases, considering the differences among member of the Organization of Petroleum Exporting Countries (OPEC) and the increase in demand stemming from a Korean plan to store oil in preparation for the high-demand season of winter.

Psychological uneasiness added to the trend, and the rampant speculative investment aimed at gaining marginal profits is adding to the instability in crude oil prices.