South Korea Turns to Venezuela as Middle East Tensions Rise

South Korean refineries are considering importing Venezuelan crude oil to diversify their supply sources and reduce reliance on the Middle East. The move comes amid conflict in the region that has disrupted shipping through the Strait of Hormuz.

The four major refiners - GS Caltex, HD Hyundai Oilbank, SK Innovation, and S-Oil - are weighing potential crude imports from Venezuela, with GS Caltex already testing the quality of 110,000 barrels imported in June. The refiner will evaluate whether the crude is suitable for its facilities and assess product yields.

The refineries are seeking to balance price competitiveness and supply stability, and are also considering alternative imports from Canada and Australia. However, US shale oil has been ruled out due to the smaller operational size of individual suppliers there.