Dubai Crude Price Surge Threatens South Korea's Inflation Target
The price of Dubai crude oil has surged to its highest level in three months, reaching $105.39 per barrel on September 7th.
This has put South Korea's inflation target of 2.6% at risk, as the government had projected that international oil prices would stabilize downward from an average of $92 in the first half to an average of $78 in the second half.
However, according to the Korea National Oil Corporation (KNOC), the average price of Dubai crude from July 1 through September 7 is $84, which is above the government's forecast.
The blockade of the Strait of Hormuz after the United States and Iran resumed attacking each other in August had an impact on oil prices.
Goldman Sachs projected that international oil prices could rise to as high as $120 this year.