South Korea Strengthens Energy Security Amid Middle East Conflict

South Korea has ensured the procurement of 74.62 million barrels of crude oil for May, equating to approximately 87% of its typical monthly imports, as announced by the presidential Blue House on Friday. This move aims to stabilize energy supplies in the shadow of ongoing Middle East conflicts.

The nation has notably decreased its reliance on Middle Eastern oil, cutting it down from 69% to 56%, thanks to increased imports from the United States and Africa, stated presidential chief of staff Kang Hoon-sik. The government views the stronger-than-anticipated economic growth in the first quarter as a testament to its resilience. This growth has been supported by significant advancements in semiconductor production and swift actions to shield energy supplies from geopolitical pressures.

South Korea's economy reported a 1.7% quarter-on-quarter expansion, with a year-on-year growth of 3.66%, marking the fastest rate since 2020's third quarter. Despite assurances on crude oil supply for May, Kang highlighted concerns over supply shortages, specifically for naphtha and downstream products. The government actively monitors supply situations, securing 2.1 million metric tons of naphtha from recent international trips, expected to enhance conditions by late April. Potential disruptions in asphalt supply have led to a review of construction scheduling.

(With inputs from agencies.)