Oil Prices Soar to $70 Per Barrel

WTI and Brent crude oil prices surged to an unprecedented level of $70 per barrel.

The price of metal, including gold, silver, and copper, and raw materials are also on the rise.

The rise of international oil prices and raw materials will lead to negative effects, including the rise in corporate production prices and a quell in demand, and is forecasted to threaten the revival of the global economy.

According to the Korea National Oil Cooperation on April 18, the WTI price traded on April 17 rose 0.51 dollars from the day before to 70.29 dollars, reaching the 70-dollar mark for the first time.

The trading rate of Brent crude oil also reached an unprecedented 70.60 dollars per barrel.

The trading rate of Dubai crude oil, which Korea mostly imports, also recorded 64.71 dollars, surpassing its previous record of 63.63 dollars.

The April average price of Dubai crude oil hit 62.42 dollars, rising more than 10 dollars compared to last year.

The price hike is largely attributed to tensions between the United States and Iran over the latter’s attempts to develop nuclear weapons.

The price of metals also suffered a price hike.

The price of futures for gold recorded 618.8 dollars per ounce in the New York Stock Exchange on April 17, rising to its highest level in 25 years.

The price of futures for copper, a leading industrial metal, rose 0.0795 dollars to 2.895 dollars per pound. The price of copper has risen 42 percent this year.

The price hike has been induced by forecasts for heightened copper demand following the 10.2 percent growth of the Chinese economy during the first quarter (January to March).

Do-Young Kim nirvana1@donga.com