South Korea is approaching the timing of its oil stockpile release carefully, as part of an agreement with International Energy Agency (IEA) members. The country had committed to releasing 22.46 million barrels of oil by June 9, following disruptions in oil markets due to the U.S.-Israeli conflict with Iran. Yang Ghi-wuk, a government official, emphasized the need for caution in determining the release timing, considering it a last resort for extreme situations.
The government’s cautious stance stems from the potential global oil crisis in August, with concerns over oil supplies if the Strait of Hormuz remains closed. IEA Executive Director Fatih Birol highlighted the rapid depletion of commercial oil inventories, warning of a possible “red zone” in oil markets by July or August. South Korea, however, currently feels less urgency for an oil release due to secured alternative supplies and existing crude swap agreements with private companies.
South Korea’s industry ministry assured that the country’s crude oil reserves are stable, with 85 percent of pre-Iran war supplies secured for use until July. Notably, the country has significantly increased its oil supplies from regions outside the Middle East, with shares from North and South America rising to 35.6 percent and Asian shipments increasing to 7.4 percent for the May-July period.
