An official from the institute said it is more likely that Dubai crude for 2008 will steadily rise from the current $68 a barrel to $75 a barrel. Dubai crude makes up the bulk of Korea's oil imports.

However he cautioned that with the rise in demand and low production from the Organization of Petroleum Exporting Countries, Dubai prices of $110 a barrel are a real possibility.

He also said chemical and rubber industries and other businesses highly dependent on oil can expect to be hit harder if crude prices exceed $100 next year.

Arirang News