Saudi Arabia, the largest oil supplier to South Korea, has seen its share of oil imports drop below 30% for the first time in five years. This decline comes amid significant changes in the domestic oil supply structure following the recent Middle Eastern conflict.
According to Yonhap News on October 5, Saudi oil accounted for 29.90% of South Korea's total oil imports from January to August this year, down from 30.91% the previous month.
This marks the first time since 2021, when the share was 29.3%, that Saudi oil imports have fallen below 30%. The year 2021 was characterized by instability in oil supply due to U.S. sanctions on Iran, geopolitical tensions in the Middle East, and the COVID-19 pandemic.
Regionally, Middle Eastern oil imports accounted for 61.8% of the total, the lowest level since 1986, when it was 60.5%. The years with the lowest annual share of Middle Eastern oil imports were 1985 at 57.0%, followed by 2021 at 59.8%, 1986 at 60.5%, and 1987 at 64.1%.
If the current trend continues, the share could fall below the 1986 record, reaching the third lowest level in history.
This shift is attributed to the increasing geopolitical risks, prompting South Korean refiners to diversify their oil import sources to reduce dependence on Middle Eastern oil.
Saudi Arabia has faced disruptions in oil supply and exports due to the blockade of the Strait of Hormuz amid the ongoing conflict, as well as attacks on its oil facilities. Although it has continued exports via the Red Sea, recent threats from Houthi rebels and attacks on pipelines have further reduced export volumes.
In response, U.S. crude oil has partially filled the gap left by the decline in Middle Eastern imports. From January to April this year, U.S. oil imports accounted for 20.7%, surpassing 20% for the first time on an annual cumulative basis, and maintained a share of 20.12% in August.
From January to August, U.S. oil imports represented 26.7%, the highest level on record. Following U.S. oil, imports from Asia accounted for 5.9%, and Africa 5.6%, both of which have increased from 5.0% and 2.2% last year, respectively.
The refining industry indicates that ongoing supply uncertainties due to the prolonged conflict in the Middle East are changing the domestic oil supply structure. Given the need for energy security, the trend of increasing non-Middle Eastern oil imports, particularly from the U.S., is expected to continue for the foreseeable future.
* This article has been translated by AI.
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