Several South Korean oil sources have confirmed that the country's purchases of low-sulfur crude from the United States and Africa are increasing as South Korean refiners are rushing to buy immediate shipments to replace the Middle East Highest cost.
Four South Korean refineries, SK Energy, GE Caltex, S-Oil and Hyundai Oil Bank, typically import more than 80 percent of their crude from the Middle East to ensure stability in the purchase of oil values Over long-term contracts.
But with Middle East oil prices buoyed by OPEC-led ongoing production cuts and concerns over Iran's crude supplies, refiners, with the exception of Saudi Arabia's largest shareholder, S-Oil, are increasingly seeking To find alternative sources of hedging against the impact of higher prices on refining activities.
"South Korean refiners focus on the economic aspects of crude purchases," said Zhou Sang-bum, an official with the Korea Petroleum Association, which represents a group of refiners in South Korea.
Four South Korean refineries, SK Energy, GE Caltex, S-Oil and Hyundai Oil Bank, typically import more than 80 percent of their crude from the Middle East to ensure stability in the purchase of oil values Over long-term contracts.
But with Middle East oil prices buoyed by OPEC-led ongoing production cuts and concerns over Iran's crude supplies, refiners, with the exception of Saudi Arabia's largest shareholder, S-Oil, are increasingly seeking To find alternative sources of hedging against the impact of higher prices on refining activities.
"South Korean refiners focus on the economic aspects of crude purchases," said Zhou Sang-bum, an official with the Korea Petroleum Association, which represents a group of refiners in South Korea.
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