Seoul: South Korea remains in an "emergency situation" concerning the country's crude oil supply, a senior official assessed Friday. The government may adjust oil supplies by refineries or impose export restrictions on related products.
According to Yonhap News Agency, Vice Industry Minister Moon Shin-hak made these remarks during an interview with radio broadcaster CBS. This comes as concerns mount over potential disruptions in oil supplies starting next month due to the continued closure of the Strait of Hormuz, a critical global oil export route.
"We need to consider various options on how to respond in an emergency situation," Moon stated, addressing the government's approach to managing oil supply. He further noted that although there have been reports of Korea having enough oil reserves to last 208 days, this is under a business-as-usual scenario that may not sustain current economic activity levels.
South Korea is reported to have a combined 190 million barrels of oil reserves. Moon explained that the government might issue orders for oil refineries to adjust their oil supplies and impose export restriction measures if conditions worsen. Currently, half of the country's oil imports are distributed domestically, while the other half are processed and exported.
The Vice Minister emphasized the importance of ensuring no disruption to the minimum level of economic activities and preventing interruptions in the industrial sector's production activities. Earlier this week, Seoul raised the alert over a potential crude oil supply disruption to Level 2 in its four-tier national resource security crisis warning system. The Level 2, or yellow, alert is issued when oil imports are expected to face disruptions due to high global market volatility.