South Korea Triples Canadian Crude Imports Amid Middle East Supply Shift

South Korea is making significant changes to its crude oil import strategy, reducing its reliance on Saudi Arabia as geopolitical tensions disrupt supply routes. In the first eight months of this year, Saudi crude accounted for just 29.9% of South Korea’s total crude imports, marking the first time since 2021 that the share dropped below 30%. This shift comes as South Korean refiners seek alternative suppliers due to the closure of the Strait of Hormuz, which has stranded some Saudi shipments and driven up oil and freight prices.

The diversification efforts have already yielded results, with U.S. crude now representing over 20% of South Korea’s imports, a milestone first achieved in April. To further secure its energy supply, South Korea has turned to other sources, including a recent agreement to triple its crude imports from Canada this year. The country also aims to boost liquefied natural gas (LNG) purchases from Canadian export projects in the coming years.

Currently, 70% of South Korea’s crude oil comes from Middle Eastern producers, much of which transits through the Strait of Hormuz. However, the country plans to reduce its dependence on Middle Eastern crude to 50% by 2035. This strategy reflects broader efforts to mitigate risks associated with geopolitical instability and supply chain disruptions in the region.