Korea's crude oil supply stable despite uncertainties: industry ministry

The very large crude carrier Universal Winner, a Korean oil tanker operated by Korean shipping company HMM, reaches waters off the southeastern port city of Ulsan, June 10, about three weeks after exiting the Strait of Hormuz, where it had been stranded amid tensions in the Middle East. Yonhap

Korea's crude oil supply remains stable despite renewed tensions in the Middle East, the industry ministry said Tuesday, vowing to closely monitor major shipping routes in the region.

"Korea has already secured crude oil equivalent to 110 percent of last year's levels for July and August, while the figure for September stands at 90 percent," the Ministry of Trade, Industry and Resources said in a release.

The industry ministry added that six oil tankers bound for Korea have passed through the Strait of Hormuz since the United States and Iran signed a memorandum of understanding for peace in June, with three of them having already arrived in the country.

"Through September, there are no significant concerns over the crude oil supply. We believe there will be no major disruptions even if traffic through the Red Sea is blocked," said Yang Gi-uk, a senior official at the ministry.

Concerns have grown in the oil industry over possible disruptions in the Red Sea, a major alternative route to the Strait of Hormuz, after the Iran-backed Houthi rebels in Yemen vowed to impose a maritime blockade on Saudi Arabia.

"For now, there appear to be no issues with traffic through the Red Sea, and we are closely monitoring the situation," Yang said.

"We are not taking any specific measures at this point, as the blockade of the Red Sea has not yet happened. However, the situation would become more complicated if the route were blocked," he added. "In that case, we would have to seek alternative routes, including the Suez Canal."