CCTV.com - CNTV English - CCTV News


Homepage > News > Biz >

Global oil prices to stay above 100 USD for long: BOK

11-07-2011 12:05 BJT

SEOUL, Nov. 7 (Xinhua) -- South Korea's central bank said Monday that global oil prices were expected to stay above 100 U.S. dollars per barrel for a protracted period of time due to tight supply and a potential speculative investment.

According to a report released by the Bank of Korea (BOK), the prices of Dubai and Brent crude oil topped the 100-dollar mark in February due to geopolitical jitters in the Mideast and the North African region, and stayed at the triple-digit level until recently despite downside pressures such as Europe's debt crisis, the U.S. economic slowdown and the possible end of political turmoil in Libya.

The BOK attributed the higher oil prices to solid industrial activities in major economies, slowing growth in global oil production and lower level of global oil inventory.

Major economies such as the United States, Europe and China showed good performance in terms of industrial production. Manufacturing activities in the United States rebounded since August, while the euro-region's production in information technology (IT), auto and machinery component sectors remained solid recently. China's industrial production sustained its solid growth trend, according to the BOK.

Meanwhile, oil production slowed down. Oil production by non- OPEC members was forecast to post the smallest since the 2008 global financial crisis, while OPEC members were unlikely to raise their production as the member nations did not want to see the global oil price go down, the BOK said.

In addition, global oil inventory stayed below its five-year average level. Oil inventory for OECD members stood at 4.22 billion barrels in August, 0.03 billion barrels lower than its average over the past five years, according to the BOK.

The BOK said global oil prices would likely stay above 100 U.S. dollars per barrel for a considerable time due to the imbalances in supply and demand for oil, predicting that global funds may flow into the international oil market if flight-to-quality sentiment eases amid abated concerns over the European fiscal crisis.

Editor:Zhang Hao |Source: Xinhua

Hot Videos view more

The celebrations are still continuing as the victorious coach, Joachim Loew, has been honored for his achievement in his hometown of Freiburg.
Germany coach Loew honored in hometown of Freiburg

Chinese men´s national team continued its preparations for next year´s Asian Cup, as they managed a one-all draw against visitors Jordan during a football friendly in Harbin, the capital city of Northeast China´s Heilongjiang Province.
China held to 1-1 draw by Jordan

The defending world champs came into the contest with a perfect 6-and-oh record, but they would be in for a tough first half before opening things up in the second.
USA beat Slovenia 119-76 in quarter-finals

Hot Stories more

UK authorities believe killer of James Foley is a British national

Across the UK the hunt is on for James Foley’s killer, who authorities believe is a British national. As Richard Bestic reports from London, Prime Minister David Cameron cut short his summer break to lead his government’s response.

Israeli war jets renews Gaza strike as truce talks stalled

Three Palestinians were killed and 40 others wounded in the intensive Israeli war jets´ airstrikes on the Gaza city on Tuesday night, shortly before an end of a 24-hour ceasefire in the Gaza Strip,

Missouri police arrest dozens after violent night

As the protests in the town of Ferguson, Missouri turned violent with police facing ´heavy gunfire´ from some ´criminal elements´, cops fired tear gas, stun grenades and arrested 31 demonstrators on Monday night.

Picture in news more

More Video News

Choose TV Program