Saudi oil share in South Korea dips below 30 percent for first time in five years

South Korea’s reliance on Saudi Arabian crude oil has dropped below 30% for the first time in five years, according to industry data released on October 5. The Korea National Oil Corp. and the Korea Petroleum Association reported that Saudi crude accounted for 29.9% of the country’s total crude oil imports from January to August 2023, down from 30.91% in the previous month.

This decline reflects South Korean refiners' efforts to diversify their crude oil supply sources amid growing geopolitical risks in the Middle East. Saudi Arabia, which remains South Korea’s largest source of crude oil, has faced disruptions due to conflicts in the region, including threats to shipping routes like the Strait of Hormuz.

As a result, South Korean refiners have increased imports from other regions, particularly the United States. U.S. crude accounted for 20.12% of South Korea’s total imports in the eight-month period, marking the first time it has surpassed the 20% mark on a cumulative basis since January-April 2023.

Industry officials suggest that if the downward trend continues, Saudi Arabia’s share could fall to third place or lower this year, potentially surpassing the previous low recorded in 1986. This shift highlights the broader strategic moves by South Korea to mitigate risks associated with Middle Eastern crude supplies.