South Korea Plans to Triple Canadian Crude Imports

Crude oil eased on Oct. 2, with the United States Oil Fund (USO) falling 1.77% to $147.37, while South Korea plans to reduce its reliance on Middle Eastern crude after supply disruptions.

South Korea plans a wider crude supply mix

Saudi Arabia remained South Korea’s largest crude supplier, but its share of the country’s imports slipped below 30% for the first time since 2021. Saudi crude made up 29.9% of imports from January through August, according to figures from Korea National Oil Corp. and the Korea Petroleum Association.

Refiners began looking for other sources in March after the Iran conflict disrupted shipping through the Strait of Hormuz. Some Saudi cargoes were stranded, and oil and freight costs rose. The Strait is a critical passage for South Korea, which currently obtains as much as 70% of its crude from Middle Eastern producers.

Alternative cargoes ease the Hormuz exposure

U.S. crude rose above 20% of South Korean imports in April and stayed above that level afterward. In the same month, South Korea arranged 273 million barrels of crude from Middle Eastern and Kazakh sources that did not require passage through Hormuz. Those volumes were enough to supply the economy for more than three months.

In June, South Korea also agreed with Canada to triple its crude imports from the country this year and increase purchases of Canadian liquefied natural gas in coming years. The moves broaden the supplier base while disruptions constrain deliveries from the Middle East.

USO slips as supply risks remain

USO, an exchange traded fund that tracks oil, closed at $147.37 on Oct. 2, down 1.77% for the day. Its 52 week range was $113.86 to $163.35, and its relative strength index stood at 52.39. The daily decline alone does not establish a specific cause.

The supplied figures document shipping interruptions and changes in import sources, but do not provide crude production totals, inventory levels or dollar movements. South Korea’s industry ministry has set a longer term goal of reducing Middle Eastern crude dependence to 50% by 2035.

Frequently Asked Questions

Does south korea have plan b?

For crude supplies, South Korea is seeking alternatives to Middle Eastern oil, including U.S., Kazakh and Canadian shipments.

Does south korea have internet?

The source information for this article does not discuss internet access.

What is south korea's plan to survive?

For energy security, its stated aim is to lower the Middle East share of crude imports to 50% by 2035 while diversifying suppliers.

Does south korea have health insurance?

The source information for this article does not address health insurance.

Is north korea planning to join the war?

The source information discusses oil shipping disruptions and does not report any North Korean plan to join a war.

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