Seoul leans on reserves, lower utilization and global sourcing to manage shortfall after Hormuz disruption

South Korea has reportedly secured around 50 million barrels of alternative crude oil for April as it scrambles to offset supply disruptions following Iran’s blockade of the Strait of Hormuz, a senior industry ministry official said on Thursday. The update comes a day after the government raised its crude resource security alert to “Alert” level. The volume is below the country’s typical monthly imports of around 80 million barrels, but officials said “substantial” additional volumes are also being arranged for May, though subject to change.

The government said supply remains within a “controllable” range due to demand management measures and lower utilization rates for petroleum and naphtha, while refiners are being supported through a strategic reserve swap system that lends stockpiled crude until alternative shipments arrive. Authorities are also pursuing additional cargoes from Saudi Arabia, Oman, Kazakhstan and the U.S., as well as naphtha from countries including Algeria and Greece. Separately, officials said Australia’s move to initiate gas export control procedures would have minimal impact on domestic supply, with existing long-term contracts unaffected.

South Korea has reportedly secured around 50 million barrels of alternative crude oil for April as it scrambles to offset supply disruptions following Iran’s blockade of the Strait of Hormuz, a senior industry ministry official said on Thursday. The update comes a day after the government raised its crude resource security alert to “Alert” level. The volume is below the country’s typical monthly imports of around 80 million barrels, but officials said “substantial” additional volumes are also being arranged for May, though subject to change.

The government said supply remains within a “controllable” range due to demand management measures and lower utilization rates for petroleum and naphtha, while refiners are being supported through a strategic reserve swap system that lends stockpiled crude until alternative shipments arrive. Authorities are also pursuing additional cargoes from Saudi Arabia, Oman, Kazakhstan and the U.S., as well as naphtha from countries including Algeria and Greece. Separately, officials said Australia’s move to initiate gas export control procedures would have minimal impact on domestic supply, with existing long-term contracts unaffected.

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