South Korea's major refineries expected the prices of Dubai crude oil to hover around US$65 to $70 this year as the free fall in global oil prices will likely be eased by a slowdown in the U.S. shale gas supply, industry sources said Thursday.
  
Out of the four market leading companies of SK Energy Co., GS Caltex Corp., S-Oil Corp. and Hyundai Oilbank Co., three refineries forecast that the Dubai crude will rebound to $65 or $70 on average throughout 2015 from $53 on Dec. 30, 2014, according to the sources.
   
The other company expected the prices to go up to $70 or $80 this year.
  
The average price of Dubai crude, which accounts for 86 percent of South Korea's total oil imports, started 2014 at $104 per barrel. South Korea relies on imports for virtually all its oil needs.
  
They noted that average prices will likely sink as low as $40 early this year as oil production outstrips demand for energy amid a slowing economic recovery in emerging countries.
 
But they predicted that a slowdown in production of the U.S. shale oil will drive up the global oil prices to over $65 in the latter half of 2015.
  
"We expect the oil prices to turnaround in the second half," said an official from one of the four refineries. "But the low-oil price situation could continue for a longer time due to sluggish consumption and a strong U.S. dollar."
   
The sharp drop in crude oil prices dented the South Korean oil refineries' profits, with their combined net deficit for 2014 expected to reach 1 trillion won ($918.7 million). The four companies posted a combined 971.1 billion won in net loss for the first nine months of the year.
   
Shares of SK Innovation Co., the owner of industry leader SK Energy, closed at 85,100 won on Dec. 30, the last trading session of 2014, a 40 percent plunge from the 143,200 won on Jan. 2. (Yonhap)