SEOUL: (Bernama-Yonhap) The South Korean government said Monday (March 23) that there will be no significant oil supply disruptions next month, as it has secured alternative shipments and plans to release strategic reserves, dismissing industry concerns amid the prolonged West Asia crisis, Yonhap News Agency reported.
Domestic refiners and petrochemical companies have projected tight oil supplies by April, citing existing stocks that could last four to five weeks and crude imports from non-West Asia sources, such as the United States and Australia.
"Recent increases in international oil prices, including Dubai crude reaching US$158 per barrel, are rising faster than during the Russia-Ukraine war in 2022, marking an unprecedented situation," said Yang Gi-uk, an official at the Ministry of Trade, Industry and Energy.
The senior official, however, emphasised the government is monitoring crude inventories in real time and believes that secured alternative shipments and the planned release of strategic reserves will prevent any major supply problems.
"While crude imports in April are expected to decline compared with usual levels, the steady inflow of alternative supplies and the planned release of strategic reserves in mid-April are expected to prevent any significant supply disruptions," he said.
The official said local refiners have secured shipments through alternative routes that bypass the Strait of Hormuz, a key global energy route, which has effectively been closed due to heightened regional tensions.
Yang cited planned imports from the United Arab Emirates, noting that of the 24 million barrels to be brought in, 4 million barrels will arrive in two shipments at the end of March and on April 1. The remaining 18 million barrels are scheduled to begin arriving in early to mid-April.
Regarding imports of Russian crude oil, Yang said domestic refiners have taken a cautious stance, citing concerns over quality issues, financial settlement risks and potential secondary sanctions. - Bernama-Yonhap
