Government Support for Crude Supply Drives 9.8% Increase in July Crude Imports

[Financial News] Domestic crude oil imports rose 9.8% year on year to 93.18 million barrels in July, despite the prolonged war in the Middle East and the blockade of the Strait of Hormuz. Analysts say disruptions to crude supplies have eased thanks to government support for crude procurement, strategic-reserve oil swaps and efforts by the refining industry to secure crude. As a result, supplies of major petroleum products, including gasoline, kerosene and diesel, have remained stable in the domestic market.
According to the Korea Petroleum Association on the 14th, domestic crude oil imports fell to approximately 64.5 million barrels in April because of disruptions to crude supplies in the early stages of the war. This was the lowest level since 2010.
Imports subsequently began to recover as the government and the refining industry worked to secure crude. According to the Korea National Oil Corporation (KNOC)’s petroleum supply and demand statistics, crude oil imports totaled 93.18 million barrels in July, up 9.8% from the same month a year earlier.
SK Energy, GS Caltex, S-Oil and HD Hyundai Oilbank, the country’s major refiners, have also maintained domestic supplies of essential petroleum products, including gasoline, kerosene and diesel, while cooperating with policies concerning the price ceiling and hoarding, the association said.
The association explained that, with stable crude imports supporting supplies of major petroleum products closely tied to people’s daily lives, South Korea has not experienced the fuel shortages seen in other countries.
The association said that, as the global oil supply crunch continues, South Korea’s refining industry is also supplying petroleum products to foreign countries, including Australia and New Zealand, in response to requests from those countries.
A Korea Petroleum Association official said, "The refining industry will do its utmost to stabilize domestic prices and supply until disruptions to global crude supplies are resolved, and will contribute to stabilizing the global supply of petroleum products."
[email protected] Kim Mi-hee Reporter