Published : Dec. 1, 2016 - 15:31
The Wednesday deal among the members of the Organization of Petroleum Exporting Countries to cut oil output by about 1 percent of the global oil production has brightened up prospects for South Korea’s exports.
(photo by 123rf)
While the OPEC deal is expected to push global oil prices up to about $60 per barrel from the current mid-$40 levels, oil price hikes will be positive for Korean exporters of petrochemical and refinery products, a government official said.
The price of Dubai crude, South Korea’s benchmark, plummeted to an average of $50.7 per barrel in 2015 from $96.6 in 2014.
“Due to low levels of global oil prices, the demand in emerging markets such as the Middle East and Russia had been weak. Oil price hikes will be a plus to exports to emerging markets,” Chae Hee-bong, deputy trade minister for energy and resources policies, said at a press briefing.
Petrochemical and refinery products account for 17 percent of Korea’s exports, which rebounded with 2.7 percent on-year growth in November.
The Bank of Korea in October had expected that oil prices would go up to $49 per barrel in 2017 from an estimate of $41 this year, raising export prospects next year.
By Kim Yoon-mi (yoonmi@heraldcorp.com)