South Korea has secured over 74 million barrels of crude oil for May, presidential chief of staff Kang Hoon-sik said Friday, easing concerns over oil supply disruptions, Yonhap reports. Kang made the announcement in a press briefing at Cheong Wa Dae, saying the government is making all-out efforts to secure additional supplies amid growing uncertainties surrounding the war in the Middle East.
For May, we have secured 74.62 million barrels of crude oil - equivalent to 87 percent of last year's monthly average - so there is little need to be concerned over supply disruptions, he said. By securing additional oil supplies from Africa and North America, Seoul has reduced its dependence on the Middle East from 69 percent to 56 percent, Kang added.
Additionally, South Korea has diversified shipping routes to those that bypass the Strait of Hormuz, a vital route for the country's imports of crude oil. The decision to import 23.99 million barrels from Saudi Arabia and 16 million barrels from the United Arab Emirates in May via alternative supply routes that bypass the Strait of Hormuz is the result of the government and the private sector's swift joint response, Kang said.
Highlighting the country's strong economic fundamentals, Kang noted the country's real gross domestic product growth far exceeded market expectations in the first quarter, expanding 1.7 percent from three months earlier and marking the fastest quarterly growth in 5 1/2 years.
We cannot let our guard down yet though, he said, citing high prices of oil and raw materials as downside risks. "We are making all-out efforts to secure alternative supplies of crude oil." Earlier, it was reported South Korea secures 18 mln barrels of Kazakh crude oil.