Saudi Pipeline Shutdown Expected to Have Limited Short-Term Impact

The recent shutdown of Saudi Arabia's major oil pipeline is expected to have a limited impact on global supply in the short term, according to the South Korean industry ministry. The Ministry of Trade, Industry and Resources held a meeting with businesses to discuss ways to address escalating tensions in the Middle East.

Local oil refiners have secured more than 90 percent of the crude needed for September and October based on previous year's levels, reducing concerns about shortfalls in supply. The government will continue to monitor developments in the region while supporting shippers seeking alternative routes.

Vice Industry Minister Moon Shin-hak emphasized that the government would communicate closely with oil refiners and maritime shippers to prevent any inconvenience to the public. South Korea is also prepared to utilize all available policy measures, including a crude oil swap system with private companies, he added.