Saudi oil share in Korea imports falls below 30 percent

Saudi Arabian crude oil accounted for less than 30 percent of Korea's crude imports this year, industry data showed Monday, amid efforts by local refiners to diversify their sources of crude following geopolitical risks in the Middle East.

Saudi crude accounted for 29.9 percent of the country's total crude oil imports in the January-to-August period, down from 30.91 percent in the January-to-July period, according to data from the Korea National Oil Corporation and the Korea Petroleum Association.

The share fell below the 30 percent mark for the first time in five years. Saudi Arabia remains Korea's largest source of crude oil.

The annual share of Saudi crude last fell below the 30 percent level in 2021, when global crude oil supplies were disrupted amid heightened tensions in the Middle East and the Covid-19 pandemic.

If the downward trend continues, Saudi Arabia's share could fall to third place or lower this year, potentially surpassing the previous low recorded in 1986, industry officials said.

The decline is seen as reflecting efforts by Korean refiners to diversify their crude oil supply sources and reduce their reliance on Middle Eastern crude amid growing geopolitical risks in the region.

Saudi Arabia has faced disruptions to crude oil supplies and exports as the conflict in the Middle East has affected oil facilities and raised concerns over a closure of the Strait of Hormuz.

Although Saudi Arabia has continued exports by using alternative routes around the Red Sea, shipments have come under further pressure as Houthi rebels have threatened shipping in the region.

Korean refiners have consequently increased imports from other regions, particularly the United States.

U.S. crude accounted for 20.12 percent of Korea's total imports in the eight-month period, remaining above 20 percent after surpassing the 20 percent mark on a cumulative basis for the first time in the January-to-April period.

Yonhap