South Korea Reduces Reliance on Saudi Crude for First Time in Five Years

South Korea’s reliance on Saudi crude oil has dropped to its lowest level in five years, reflecting a broader shift in the country’s energy imports. Data from the Korea National Oil Corp. and the Korea Petroleum Association revealed that Saudi crude accounted for just 29.9% of South Korea’s total crude oil imports between January and August 2026, down from 30.91% the previous month. This marks the first time since 2021 that Saudi Arabia’s share has fallen below 30%. Despite this decline, Saudi Arabia remains South Korea’s largest crude supplier.

The reduction in Saudi crude imports is part of a broader strategy by South Korean refiners to diversify their supply sources amid geopolitical risks in the Middle East. The conflict in the region has raised concerns over disruptions in the Strait of Hormuz and the Red Sea, prompting refiners to seek alternative suppliers. U.S. crude, for instance, accounted for 20.12% of South Korea’s imports in the same period, maintaining its position as a key alternative.

Industry officials warn that if the current trend continues, Saudi Arabia’s share could drop to third place or lower by the end of the year. This would surpass the previous low recorded in 1986, highlighting the significant shift in South Korea’s energy strategy. The decline underscores the growing importance of supply diversification in mitigating geopolitical risks and ensuring energy security.