The South Korean government assured the public on Monday that there will be no major oil supply disruptions in the coming month, despite ongoing concerns surrounding the Middle East crisis. The government’s statement addresses industry worries, highlighting secured alternative shipments and plans to release strategic oil reserves.
Domestic refiners and petrochemical companies had previously projected potentially tight oil supplies for April, based on estimates of existing inventories lasting four to five weeks and reliance on crude oil imports from sources outside the Middle East, including the United States and Australia.
“Recent increases in international oil prices, with Dubai crude reaching US$158 per barrel, are accelerating faster than during the Russia-Ukraine war in 2022, presenting an unprecedented situation,” stated Yang Gi-uk, an official at the Ministry of Trade, Industry and Energy.
However, the senior official emphasized that the government is actively monitoring crude oil inventories in real time. They believe that the combination of secured alternative shipments and the planned release of strategic petroleum reserves will effectively prevent any significant oil supply problems.
“While crude oil imports in April are expected to be lower than usual, the consistent arrival of alternative supplies and the scheduled release of strategic reserves in mid-April are projected to prevent any major supply disruptions,” he stated.
The official further clarified that local refiners have successfully secured shipments through alternative routes, bypassing the Strait of Hormuz, a crucial global energy transit point that has been effectively closed due to escalating regional tensions.
Yang pointed to planned imports from the United Arab Emirates, noting that out of the 24 million barrels contracted, 4 million barrels are scheduled to arrive in two shipments at the end of March and on April 1. The remaining 18 million barrels are expected to begin arriving in early to mid-April, ensuring a steady supply of crude oil to South Korea.
