U.S., Canada urge Korea not to impose controls on petroleum exports

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U.S., Canada urge Korea not to impose controls on petroleum exports

Published: 22 Apr. 2026, 17:33 Updated: 22 Apr. 2026, 19:24

SARAH CHEA
[email protected]

Audio report: written by reporters, read by AI

HD Hyundai Oilbank's oil refining plant in Daesan, South Chungcheong [HD HYUNDAI OILBANK]

The United States, Canada, Australia and others have urged Seoul to refrain from imposing controls on petroleum exports, after several Asian countries moved to restrict exports amid protracted instability in Middle Eastern crude supplies.

Despite being a non-oil-producing country, Korea is a highly advanced refining hub, with overseas markets relying heavily on its gasoline, diesel and jet fuel exports. With Korea importing 70 percent of its crude from the Middle East, the closure of the Strait of Hormuz has constricted crude inflows, hampering production and disrupting exports of refined products.

“Countries such as Australia, the Netherlands and the Philippines have expressed deep concern and are making requests regarding potential curbs on Korean exports,” said Yang Ki-wook, the director-general for industry, trade and resource security at the Ministry of Trade, Industry and Resources.

“For these countries, export controls would be more damaging than a closure of the Strait of Hormuz, as they rely on importing refined petroleum products anyway,” Yang said, adding that any move to restrict exports must be “approached with the utmost caution.”

The United States and Canada have also voiced concern about Korea’s jet fuel exports, while Japan has reportedly urged Seoul to refrain from restricting diesel shipments.

So far, Seoul has not imposed export restrictions on petroleum products other than naphtha. However, output has declined, and a growing share has been diverted to domestic consumption, resulting in a sharp drop in export volumes.

Korea’s outbound shipments of refined petroleum products — including gasoline, diesel, kerosene and jet fuel — fell 20 percent to 35.97 million barrels in March from 43.9 million barrels in February, according to data from the Korea National Oil Corporation.

Gasoline shipments posted a steep decline, dropping about 34 percent on month to 6.9 million barrels from 10.5 million, while jet fuel exports fell 15 percent to 7.3 million barrels. Kerosene saw the sharpest contraction overall, plunging nearly 60 percent to 224,000 barrels from 491,000 in February.

Korea ranks among the world’s top five in refining capacity, with highly sophisticated crude-processing capabilities. Three single-site facilities operated by SK Energy, GS Caltex and S-Oil stand among the five largest in the world.

The country is also the world’s No. 1 exporter of jet fuel, producing more than 150 million barrels in 2024, of which roughly 90 million barrels were shipped overseas, accounting for about 30 percent of the global market.

Australia was the largest importer of Korea’s oil products at 16.8 percent as of last year, followed by Singapore at 13.6 percent, Japan at 11.3 percent and the United States at 10.2 percent. In the case of Australia’s refined fuel import market, Korea is the largest supplier with shipments valued at $7.4 billion.

Korea has virtually halted exports of fuel as refiners sharply cut jet fuel production and nearly all volumes have been redirected to domestic use, as reported exclusively by the Korea JoongAng Daily in early April.

Shipments of jet fuel to the United States fell about 40 percent to 2.58 million barrels in March, from 4.03 million in February.

The United States finds itself most vulnerable, as around 70 percent of U.S. jet fuel imports come from Korea, according to the U.S. Energy Information Administration. In West Coast states, including California, Washington and Hawaii, the share is as high as 85 percent.

BY SARAH CHEA [[email protected]]