South Korea Prepares Reserve Oil Swap System Amid Middle East Tensions

The South Korean government is planning to restart its reserve oil swap system in response to potential disruptions in crude oil supply chains due to escalating tensions in the Middle East.

According to sources, the Ministry of Trade, Industry and Energy is conducting a demand survey for oil refineries to determine how many shipments will be delayed from Janbu Port in Saudi Arabia.

The government aims to fill this shortage by lending oil reserves to refiners, who will then secure alternative crude oil. This system was previously implemented from April to June.

Domestic crude oil introduction volumes have been secured at over 100% of last year's levels for July and August, but some September introductions are expected to be delayed due to bypass transportation.

An official from the Ministry of Industry noted that the timing of implementation may be accelerated depending on the situation.