Gasoline prices gain for 28th consecutive day

The nation’s gasoline prices increased for nearly a month without a daily adjustment, starting on April 20, amid the continuous rebound in international crude oil prices which hover at around $60 per barrel.

According to Opinet of the Korea National Oil Corp., the benchmark gasoline price for consumers posted 1,544.63 won ($1.4) per liter as of Sunday, up 0.67 won from a day earlier and 17.63 won from a week ago. It has gained for the 28th consecutive day after it traded at 1,504.68 won on April 19.

Most industry analysts shared the view that in the coming months it is difficult for the benchmark price to sink below this year’s low of 1,409.73 won, recorded on February 5.

Instead, more and more forecasts are betting on the scenario that the price could eventually surpass, later this year, the yearly high of 1,586.62 won, posted on Jan. 1.

The benchmark diesel price has also surged compared to the previous month. It, stood at 1,317.05 won per liter on April 19 and reached 1,344.92 won on Sunday.

Gas stations nationwide are reflecting the rising crude oil prices, which are estimated to have hit the bottom in late January. The Dubai crude price rose to $64.58 per barrel on May 15, compared with $45.28 on Jan. 20. Brent crude futures and Western Texas Intermediate futures also surged over the past few months.

While some economists at home and abroad project the oil price will stop its gains and stall below the $70 mark for a long period, others do not rule out the possibility of further increases amid the ongoing geopolitical risks in the Middle East and the growing demand from the U.S.

Global traders are focusing their attention on the OPEC meeting scheduled for June 5 in Vienna.

By Kim Yon-se (kys@heraldcorp.com)