Gov't Shrugs Off 'November Crisis' Fears, Citing Over 70% Crude Oil Supply Secured

The South Korean government has dismissed rumors of an impending 'November crisis' in crude oil supplies, citing that over 70% of the November volume has already been secured.

According to Yang Gi-wook, head of the Industrial Supply Chain Security Policy Directorate at the Ministry of Trade, Industry and Energy, more than 90% of the crude oil import volume for September and October compared to last year's average has been secured.

The government is preparing to ensure a stable supply by utilizing alternative shipping routes and the strategic petroleum reserve (SPR) swap system, which allows refineries to borrow from government reserves in exchange for future repayment when alternative volumes arrive.

Rumors of a 'November crisis' have been rising due to disruptions in crude exports from Saudi Arabia, the world's largest crude exporter, following drone attacks on its East-West Pipeline, which could take 6-8 weeks to fully restore.