Industry data released on Monday showed that Saudi crude accounted for less than 30% of South Korea's total crude oil imports this year, as the country's refiners push to diversify their sources of crude supply amid Middle East geopolitical risks.
According to data from Korea National Oil Corporation and the Korea Petroleum Association, Saudi crude made up 29.9% of South Korea's total crude imports between January and August this year, slipping below the 30% mark for the first time in five years. Saudi Arabia nonetheless remains South Korea's largest crude oil supplier.
The last time Saudi crude's share fell below 30% was in 2021, when tensions in the Middle East combined with the COVID-19 pandemic to disrupt global crude supplies. Industry insiders say that if the downward trend continues, Saudi Arabia's market share this year could drop to third place or lower, possibly even falling below the historic low recorded in 1986.
The decline is seen as a reflection of efforts by South Korean refiners to diversify their crude supply sources and reduce reliance on Middle Eastern crude in response to growing geopolitical risks in the region. The Middle East conflict has affected oil facilities and raised concerns about a possible closure of the Strait of Hormuz, disrupting Saudi Arabia's crude supply and exports.
Although Saudi Arabia has maintained exports through an alternative route bypassing the Red Sea, its shipping activities continue to face further pressure as Houthi attacks threaten maritime security in the region. As a result, South Korean refiners have increased imports from other regions, especially the United States.
Over the eight-month period, US crude accounted for 20.12% of South Korea's total crude imports. After the cumulative share topped the 20% threshold for the first time during the January-to-April period, it has continued to hold above 20%.
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