Key facts
- Saudi crude oil accounted for 29.9% of South Korea's total crude oil imports in January-August.
- This marks the first time in five years that Saudi crude's share has fallen below 30%.
- Saudi Arabia remains South Korea's largest source of crude oil.
- South Korean refiners have increased imports from the United States, which accounted for 20.12% of total imports in the same period.
- The decline is attributed to efforts by refiners to diversify supply sources amid geopolitical risks in the Middle East.
Saudi Arabian crude oil accounted for less than 30 percent of South Korea's crude imports in the January-August period, marking the first time in five years that the share has fallen below this threshold, according to industry data released Monday.
Saudi Arabia remains the largest source of crude oil for South Korea, but its share in the January-August period was 29.9 percent, down from 30.91 percent in the previous month. The last time Saudi crude's share fell below 30 percent was in 2021, a period marked by global supply disruptions due to Middle East tensions and the COVID-19 pandemic.
Industry officials noted that if the downward trend persists, Saudi Arabia's share could drop to third place or lower this year, potentially surpassing the previous low recorded in 1986. This shift reflects South Korean refiners' efforts to diversify their crude oil supply sources and reduce reliance on Middle Eastern crude amid escalating geopolitical risks in the region.
Geopolitical tensions, including conflicts in the Middle East and threats to shipping in the Red Sea by Houthi rebels, have impacted Saudi crude oil supplies and exports. While Saudi Arabia has continued exports using alternative routes, South Korean refiners have increased imports from other regions, particularly the United States. U.S. crude accounted for 20.12 percent of South Korea's total imports during the eight-month period, maintaining a share above 20 percent.