Korea secures eight-month crude oil stockpile amid Israel-Hamas conflict

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Korea secures eight-month crude oil stockpile amid Israel-Hamas conflict

Published: 10 Oct. 2023, 20:12

PARK EUN-JEE
park.eunjee@joongang.co.kr

Industry Minister Bang Moon-kyu speaks during a parliamentary audit held at the National Assembly in western Seoul on Tuesday. [NEWS1]

Industry Minister Bang Moon-kyu said Tuesday that Korea has secured an eight-month stockpile of crude oil and is considering expanding the amount on concerns about supply disruptions amid the conflict between Israel and the Palestinian militant group Hamas.

Hamas launched massive attacks on Israel on Saturday and Israel conducted retaliatory strikes against it. The worst escalation in decades between the two sides has sent global oil prices higher on supply and output concerns.

During a parliamentary audit, Bang said that Korea is capable of dealing with temporary market volatility as it now has oil reserves that can be used for eight months, including reserves stored by the private sector.

“But it is crucial to expand the stockpile until concerns about the conflict are eased,” the minister said. “The government will draw up contingency plans to be fully prepared for worst-case scenarios.”

The country has not experienced any major delays or disruptions in importing oil and gas from the Middle East, but the government has enhanced monitoring and sought countermeasures to minimize potential impacts on the economy, according to the Ministry of Trade, Industry and Energy.

Korea depends on imports for most of its energy needs, and some 67 percent of its crude oil purchases and 37 percent of its total gas deals come from the Middle East.

Speaking of companies operating in Israel and adjacent regions, Bang vowed to beef up monitoring by using a hotline, though no issues with Korean businesses have been reported.

Yonhap