International oil prices expected to exceed US$65 per barrel in Q3

International crude oil prices are expected to top US$65 per barrel in the third quarter, spurred by strong demand for refined products, the Korea National Oil Corp. (KNOC) said on Friday predicting demand-side pressure will cause Dubai Crude prices to rise, despite more output by non-Organization of Petroleum Exporting Countries.The average price of Dubai Crude, which makes up the bulk of South Korea's oil imports, was slightly more than US$59 per barrel from January through early June. However, prices climbed to US$63.98 in April and over US$64 in May. In 2006, the average price of the Dubai Crude stood at US$61.55, up sharply from US$49.37 in the previous year.The KNOC said there are indications that demand for gasoline may remain strong in the July-September period, leading to higher crude prices.On the positive side, the South Korean state-run oil company said that with a steady increase in production, but decreased demand for certain refined fuel products going into winter, prices could ease back to US$65 per barrel in the fourth quarter.High oil prices adversely affect economic conditions in South Korea, which imports most of its crude oil from abroad. In 2006, the country imported US$77.4 billion worth of crude oil, liquefied natural gas and petroleum products. Crude oil imports stood at US$55.9 billion in 2006, up 31.3 percent from the year before. Source