South Korea Secures 60 Million Barrels of Oil for May Amid Middle East Supply Disruptions
Synopsis
In a strategic move to combat supply disruptions from the Middle East, South Korea has secured an additional 60 million barrels of oil for May. This initiative highlights the country's proactive measures to ensure energy security amidst geopolitical challenges.
Key Takeaways
60 million barrels of alternative oil secured for May.
Total of 110 million barrels acquired from various countries.
Oil swap system allows refiners to borrow from national reserves.
Expectations of 770,000 tons naphtha imports this month.
Collaboration with companies to ensure supply stability.
Seoul, April 7 (NationPress) South Korea has successfully arranged for an extra 60 million barrels of alternative oil supplies for May. This measure is essential due to the disruption of oil supplies from the Middle East resulting from the effective closure of the Strait of Hormuz, as announced by the government on Tuesday.
To date, the nation has acquired a total of 110 million barrels of oil—comprising 50 million for April and 60 million for May—from 17 different countries, including Saudi Arabia, the United States, the United Arab Emirates, Brazil, and Canada. Yang Ghi-wuk, the deputy minister for trade, industry, and resource security, stated this during a regular press briefing, as reported by Yonhap news agency.
The oil secured for April and May accounts for approximately 60 percent and 70 percent of South Korea's usual monthly oil requirements, respectively, he elaborated.
On the topic of the recently introduced oil swap system, Yang noted that the country's top four refiners have proposed plans to borrow over 30 million barrels under the initiative, with around 8 million barrels expected to be delivered this week.
This oil swap system allows South Korean refiners to borrow crude oil from the national reserves and return the equivalent amount once their foreign shipments arrive.
“Refiners have shown keen interest in this oil swap system and are eager to utilize it,” he remarked.
In relation to naphtha, a vital component in petrochemical production, Yang anticipates that imports of this raw material will reach 770,000 tons this month, which represents about 70 percent of the volume imported in the same month last year.
Additionally, the overall supply of naphtha is projected to be around 80 to 90 percent of the amount typically required for the month when considering 1.1 million tons produced domestically. Yang added, “We aim to collaborate with companies to secure naphtha supplies once the supplementary budget is approved and allocated.”
Point of View
This move by South Korea showcases a proactive approach to ensuring energy security amidst geopolitical uncertainties. The diversification of oil sources reflects a strategic mindset, crucial for maintaining stability in the energy sector.
NationPress
20 Jun 2026
Frequently Asked Questions
Why is South Korea securing alternative oil supplies?
South Korea is securing alternative oil supplies to mitigate disruptions caused by the closure of the Strait of Hormuz, which has affected Middle Eastern oil supplies.
How much oil has South Korea secured?
South Korea has secured a total of 110 million barrels of oil, including 60 million barrels for May.
What is the oil swap system?
The oil swap system allows South Korean refiners to borrow crude oil from the national reserves and return the same amount once their foreign shipments arrive.
How much naphtha is South Korea expected to import this month?
South Korea expects to import 770,000 tons of naphtha this month, which is approximately 70% of last year's imports for the same period.
What countries are included in South Korea's oil supply acquisitions?
South Korea has secured oil supplies from 17 countries, including Saudi Arabia, the United States, the UAE, Brazil, and Canada.
