State-run firm to release strategic oil reverses if Middle East conflict escalates

Korea's state-run oil company said Friday it is inspecting the readiness of local storage facilities to prepare for a potential release of reserves should the ongoing Middle East crisis escalate.

"If the crisis escalates, including a scenario of the war expanding to other parts of the Middle East, we have a plan to release reserve oil in line with the government's policy to stabilize the supply," the Korea National Oil Corp. said in a statement.

The company is currently inspecting the readiness at nine reserve stations across the country to prepare for a contingency, it added.

Korea maintains a strategic oil reserve of 96 million barrels, sufficient to meet the nation's energy needs for 120 days.

The government, meanwhile, expects the Israel-Hamas conflict to have a limited impact on the domestic supply of energy sources, as the Gaza Strip is located away from the Strait of Hormuz islands, a critical maritime route for the country's energy imports.

The Middle East takes up 67 percent of Korea's crude imports. (Yonhap)