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Gas station fuel prices fall for 17th consecutive week. / Yonhap

Despite the prolonged Middle East war and the blockade of the Strait of Hormuz, South Korea's crude oil import volumes have shown signs of recovery, keeping the supply and demand of petroleum products stable. Although crude imports plunged to their lowest level since 2010 during the early stages of the conflict, imports in July increased compared to the same month last year thanks to government supply support, strategic reserve swaps, and active procurement efforts by domestic refiners.

According to the Korea Petroleum Association on the 14th, citing oil supply and demand statistics from the Korea National Oil Corporation, domestic crude oil imports in July reached 93.18 million barrels, up 9.8% year-on-year. Compared to April, when crude imports shrank to around 64.5 million barrels, the volume expanded by 28.68 million barrels in just three months. The April volume had marked the lowest level recorded since 2010.

The association explained that government crude supply support measures and strategic reserve swaps contributed to the rebound in import volumes. The four major refiners—SK Energy, GS Caltex, S-Oil, and HD Hyundai Oilbank—have also stepped up crude procurement while maintaining domestic supplies of petroleum products including gasoline, kerosene, and diesel in accordance with the public notice prohibiting hoarding that took effect alongside the price cap system.

With the recovery in crude imports, fuel shortages did not materialize domestically despite supply disruptions originating from the Middle East, according to the association. As the price cap system enters its sixth consecutive month, refiners continue to prioritize domestic supply.

While maintaining domestic supply and demand, refiners are also shipping select petroleum products overseas. The association noted that domestic refiners are supplying petroleum products at the request of countries such as Australia and New Zealand, which have faced supply disruptions amid the global petroleum crunch.

An official from the Korea Petroleum Association stated, "The refining industry will do its utmost to stabilize domestic prices and supply until global crude supply disruptions are resolved, while also contributing to the stabilization of global petroleum product supply."

                                                                                                          Lee Seo-yeon