Instability in Middle East Deepens... Ministry of Industry Assures No Disruption in Crude Oil and LNG Imports

Amid escalating instability in the Middle East following the Yemeni Houthi rebels' attacks on civilian vessels in the Red Sea region and the subsequent airstrikes launched by the US and UK coalition forces, the government conducted an emergency review of the oil and gas supply situation.

On the 14th, Choi Nam-ho, the 2nd Vice Minister of the Ministry of Trade, Industry and Energy, held an emergency situation assessment meeting with Korea National Oil Corporation, Korea Gas Corporation, and industry representatives (four major refiners) to check the domestic oil and gas supply status and the impact on oil prices in the Middle East region.

원본보기 아이콘

During the meeting, the Ministry confirmed that there have been no disruptions in the domestic import of crude oil and LNG so far, and that all oil tankers and LNG carriers currently sailing or loading near the Middle East are operating normally. However, considering the possibility of an energy supply crisis depending on how the situation unfolds, the Ministry, together with the oil and gas corporations, reviewed the domestic oil and gas stockpiles and emergency response manuals to prepare for supply emergencies. Furthermore, the Ministry emphasized close communication with the industry to swiftly respond to the rapidly changing situation and urged the industry to make efforts to prevent increased burdens on the public due to potential future oil price hikes.

Regarding the current situation, international oil prices showed a slight upward trend, with Brent crude oil rising about 1.1% from the previous trading day to $78.29 per barrel on January 12. The continuation of this price increase is expected to depend on the responses of major countries involved in the Middle East situation, such as the United States and Iran. The Ministry analyzed previous Middle East conflict cases in detail and discussed various Middle East scenarios and corresponding response plans based on the actions of key countries.

Choi Nam-ho, the 2nd Vice Minister of the Ministry of Trade, Industry and Energy, stated, "The Middle East is a region of great importance to Korea's energy security, supplying 72% of the crude oil imported by Korea. We will work closely with related government agencies and the industry to respond comprehensively to ensure that the recent Middle East situation does not disrupt the daily lives of our citizens."

© The Asia Business Daily(www.asiae.co.kr). All rights reserved.