Middle Eastern crude imports to South Korea plunge nearly 40%, U.S. oil closes gap

South Korea's reliance on Middle Eastern crude oil has significantly decreased, with imports from the region dropping by nearly 40% in April compared to the previous year. This shift comes as supply uncertainties escalate due to conflicts involving the U.S., Israel, and Iran.

In contrast, the nation increased its intake of crude oil from non-Middle Eastern sources. Notably, imports of U.S. crude oil, known for its compatibility with heavier Middle Eastern grades, rose by 13.4%. The gap between U.S. and Saudi Arabian imports narrowed considerably, with the latter remaining the top supplier but facing closer competition.

Imports from Australia and Canada saw dramatic increases of 89% and 205.5%, respectively. New supplies were also secured from African nations like the Democratic Republic of Congo, Algeria, and Nigeria. The Ministry of Trade, Industry and Energy assured that secured oil volumes for May and upcoming months exceed 80% of normal levels, mitigating immediate supply concerns.

Despite a stabilization in oil flow through the Strait of Hormuz, officials acknowledge ongoing variables and plan to meticulously monitor the supply situation through August.

“

As large crude oil carriers have passed through the Strait of Hormuz recently, oil supply and demand have stabilized considerably compared to the initial stages (of the conflict), but there are still various variables, so we will closely monitor the supply situation in August.