Oil prices dip to $20 a barrel

The price of Dubai crude, which had topped the $30-a-barrel mark, plunged by nearly $10 in December, officials said Thursday.

According to the Korea National Oil Corp. (KNOC), Dubai crude, a major Korean import, closed at $20.30 a barrel on the spot market Wednesday, the lowest level in eight months. Due to the violence between Israelis and Palestinians, the price surged to $29.98 a barrel in September, $30.55 in October and $30.33 in November.

KNOC officials said the price fell due to the resumption of Iraq's oil exports after a ten-day suspension and the nearing of the closing date for orders for January delivery. They predicted that the price would stabilize at around $20 for the time being.

Lee Byong-Ki eye@donga.com