Saudi crude drops below 30% of South Korea's imports for first time in five years

For the first time in five years, Saudi Arabian crude oil made up less than 30% of South Korea's total crude imports. Data from the Korea National Oil Corp. and the Korea Petroleum Association showed that Saudi crude accounted for 29.9% of imports from January to August, down from 30.91% in the previous month. This marks a significant shift, as Saudi Arabia has long been South Korea's top crude supplier.

The decline reflects South Korean refiners' efforts to diversify their oil sources due to geopolitical risks in the Middle East. The region has faced disruptions, including threats to the Strait of Hormuz and attacks on oil facilities. Despite using alternative routes, Saudi exports have been pressured by Houthi rebel threats in the Red Sea.

In response, South Korean refiners have increased imports from other regions, particularly the United States. U.S. crude accounted for 20.12% of total imports in the eight-month period, surpassing the 20% mark for the first time in the January-April period. If the trend continues, Saudi Arabia's share could fall to third place or lower this year, surpassing the previous low recorded in 1986.