Korea should brace for oil price volatility
Fears growing over export drop, deflation By Lee Kyung-min Oil prices will continue to fluctuate due to heightened uncertainty over how the recent conflict between major oil producers will unfold, with the rapid spread of the new coronavirus remaining a major risk crushing demand, analysts said Tuesday. Oil prices fell over 30 percent March 9, the biggest fall since the 1991 Gulf War. The price shock came as Saudi Arabia slashed its export oil prices over the weekend after Russia refused to agree to further production cuts. The global oil benchmark Brent crude was at $33.09 (39,500 won) a barrel on Monday (local time), a fall of 27 percent. U.S. crude fell 27 percent to $30. While Goldman Sachs has warned that the price of oil could tumble further to as low as $20 a barrel, local analysts view such a scenario as unlikely. “Our baseline scenario is that the price will move between a range of 35 and 45 dollars per barrel,” Meritz Securities chief economist Stephen Lee said.“The coronavirus will spread but will eventually be contained in a month or two. Although the di
