Seoul:Saudi Arabian crude oil accounted for less than 30 percent of South Korea's crude imports this year, as local refiners seek to diversify their sources amid geopolitical risks in the Middle East.
According to Yonhap News Agency, industry data from the Korea National Oil Corp. and the Korea Petroleum Association revealed that Saudi crude made up 29.9 percent of South Korea's total crude oil imports from January to August. This is a decrease from 30.91 percent in the previous month and marks the first time in five years that the share has fallen below 30 percent.
Despite the decline, Saudi Arabia remains South Korea's largest source of crude oil. The last time the annual share of Saudi crude dropped below 30 percent was in 2021, during disruptions caused by heightened tensions in the Middle East and the COVID-19 pandemic.
Industry officials suggest that if the downward trend continues, Saudi Arabia's share could fall to third place or lower this year, potentially reaching a low not seen since 1986. This shift reflects the efforts of South Korean refiners to diversify their crude oil supply sources and reduce reliance on Middle Eastern crude.
Saudi Arabia has faced disruptions in crude oil supplies due to the conflict in the Middle East, which has impacted oil facilities and raised concerns about the closure of the Strait of Hormuz. Although the country has found alternative routes around the Red Sea, shipments remain under pressure due to threats from Houthi rebels.
In response, South Korean refiners have increased imports from other regions, particularly from the United States. U.S. crude accounted for 20.12 percent of South Korea's total imports in the eight-month period, maintaining a level above 20 percent after first surpassing this mark in the January-April period.