South Korea said on Wednesday it would receive an additional 18 million barrels of oil from the United Arab Emirates through multiple supply channels as the Iran war disrupts global supplies and sends prices higher.
About 70 per cent of South Korea’s crude oil imports pass through the Strait of Hormuz, which Iran has effectively closed since US-Israeli strikes began on February 28.
“The UAE will supply six million barrels via three UAE-flagged vessels, and an additional 12 million barrels will be delivered on six Korea-flagged vessels,” Kang Hoon-sik, presidential chief of staff, said at a press briefing.
They will deliver the oil through “diversified supply channels”, he said, declining to elaborate on the route.
“As 70 per cent of the crude oil we import passes through the Strait of Hormuz, securing alternative supply routes that bypass the strait is urgently needed,” he added.
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The world’s eighth-largest consumer of crude oil has also struck an agreement with the UAE that would allow it to “make emergency purchase of crude oil at any time”.
It follows an earlier deal to import around four million barrels of oil from the UAE and allows it to use up to two million barrels from jointly held strategic reserves that the UAE stores in South Korea upon request.
The war has prompted Seoul to impose a fuel price cap for the first time in nearly 30 years.
The country consumes around 2.5 million barrels per day as of the end of 2024, according to Worldometer.
AFP
