Petroleum Product Exports Increase for 2 Consecutive Years... Export Value Decreases

Diesel Accounts for 41%, Top Export Item
Gasoline Exports Surge in U.S. Market

Despite the global economic recession and a decline in domestic demand, oil refiners have continued to increase their exports of petroleum products for the second consecutive year.

On the 26th, the Korea Petroleum Association announced that the exports of petroleum products by the four domestic refiners (SK Energy, GS Caltex, S-Oil, and HD Hyundai Oilbank) reached 228.5 million barrels in the first half of this year. This represents a 3.2% increase compared to the same period last year. The association explained, "Due to the impact of COVID-19, petroleum product exports hit a 10-year low in 2021 (approximately 196 million barrels), but thanks to the increase in global mobility demand, exports have risen for two consecutive years."

However, export value fell by 22.1% to $21.811 billion during the same period due to a decline in export prices caused by weak international oil prices. The export profitability, calculated by subtracting crude oil import costs from petroleum product export prices, also dropped by about 52% to $11.4 per barrel due to the deterioration of global refining margins.

The largest export item was diesel, accounting for 41%. This was followed by gasoline (20%), jet fuel (19%), and naphtha (8.0%). Naphtha exports increased the most, rising 41% year-on-year, driven by expanded exports to China and Japan. Jet fuel exports also grew by 20.6% due to the recent increase in global passenger demand.

Tank trucks are operating on the road in front of the Seoul branch of Daehan Oil Pipeline Corporation in Seongnam, Gyeonggi Province. / Seongnam = Photo by Kang Jin-hyung aymsdream@

The main export destinations for petroleum products were Australia (18.2%), Singapore (11.8%), China (11.2%), Japan (10.1%), and the United States (9.6%). Australia showed the highest growth rate among major export countries, with petroleum product export volumes increasing by 25.6% in the first half of this year, supported by rising jet fuel demand. Exports of gasoline to the United States surged, reaching 5.25 million barrels, a 95% increase year-on-year and the highest half-year figure on record. This was due to expanded exports of U.S. gasoline to Europe following the Russia-Ukraine war and increased gasoline consumption in the U.S. during the summer driving season.

The outlook for continued export growth is uncertain. A representative from the association stated, "Concerns about demand decline are emerging due to the global economic slowdown, and external conditions remain uncertain with increased oil price volatility caused by OPEC+ production cut policies. The refining industry will continue to expand its base to various countries and compete in the global market."

This content was produced with the assistance of AI translation services.