Measures to limit outflows suggest Seoul is preparing for tighter markets as crude disruptions threaten supply chains

South Korea’s industry ministry said Monday it held a series of bilateral talks with Saudi Arabia, the United Arab Emirates, Qatar, the European Union and the Philippines to address disruptions in global oil and liquefied natural gas (LNG) supply linked to escalating tensions in the Middle East. The discussions focused on stabilizing energy supply chains as uncertainty surrounding transit through the Strait of Hormuz increases. Seoul requested support from Saudi Arabia and the UAE to secure crude oil via alternative routes, including through Red Sea and Fujairah terminals, while also seeking assurances from Qatar that long-term LNG contracts would be honored despite potential production disruptions.

The ministry said South Korea plans to release 22.46 million barrels of strategic reserves, its largest-ever drawdown, as part of coordinated efforts with the International Energy Agency. Authorities are also implementing a temporary price cap on petroleum products and introducing export management measures to prevent excessive overseas outflows. Officials said the export measures are designed to maintain shipments within typical levels rather than impose a full restriction, and briefed Philippine counterparts, a key export market, on the policy.

South Korea’s industry ministry said Monday it held a series of bilateral talks with Saudi Arabia, the United Arab Emirates, Qatar, the European Union and the Philippines to address disruptions in global oil and liquefied natural gas (LNG) supply linked to escalating tensions in the Middle East. The discussions focused on stabilizing energy supply chains as uncertainty surrounding transit through the Strait of Hormuz increases. Seoul requested support from Saudi Arabia and the UAE to secure crude oil via alternative routes, including through Red Sea and Fujairah terminals, while also seeking assurances from Qatar that long-term LNG contracts would be honored despite potential production disruptions.

The ministry said South Korea plans to release 22.46 million barrels of strategic reserves, its largest-ever drawdown, as part of coordinated efforts with the International Energy Agency. Authorities are also implementing a temporary price cap on petroleum products and introducing export management measures to prevent excessive overseas outflows. Officials said the export measures are designed to maintain shipments within typical levels rather than impose a full restriction, and briefed Philippine counterparts, a key export market, on the policy.

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