Saudi pipeline shutdown to have limited impact on supply in short term: gov't
Oil prices are displayed at a gas station in Seoul, Sunday. Yonhap
The recent shutdown of a major oil pipeline in Saudi Arabia is expected to have only a limited impact on supply in the short term, the industry ministry said Monday, pledging to closely monitor the situation in cooperation with relevant businesses.
The Ministry of Trade, Industry and Resources hosted a meeting with businesses to discuss ways to address escalating tensions in the Middle East, including an attack on Saudi Arabia's crucial East-West pipeline.
According to the ministry, local oil refiners have secured more than 90 percent of the crude needed for September and October based on the previous year's levels, noting that the latest developments are expected to cause very little shortfalls in regard to supply.
The government said it will continue to monitor developments in the Middle East while supporting shippers seeking to use alternative routes.
"The government will communicate closely with oil refiners and maritime shippers while closely monitoring supply conditions to prevent any inconvenience to the public," Vice Industry Minister Moon Shin-hak said.
Korea will also utilize all available policy measures, including a crude oil swap system with private companies, he added.