South Korea's refining industry expects to continue its clean oil product exports to Asia-Pacific customers by the end of this year, thanks to a stable supply of crude feedstock. This action is particularly aimed at addressing the shortage of essential fuels in the region.
Crude Feedstock Supply and Refining Capacity
As the largest supplier and exporter of clean oil products in Asia, South Korea has secured all its crude feedstock needs for October. According to reports from refineries in Ulsan, Seoul, and Yeosu, crude oil imports for the fourth quarter of this year will reach at least 90% of last year's monthly import levels. In this regard, through diversification efforts, large quantities of light and sweet crude from the United States as well as heavy and sour crude from Canada and various Latin American countries will be regularly imported into the country.
Exports to Partner Countries
In the first eight months of this year, South Korea exported 62.03 million barrels of refined oil products, mainly including diesel and gasoline, to Australia, marking an 18% increase compared to the same period last year. Additionally, exports to New Zealand also grew by 11% compared to last year, reaching 16.7 million barrels. With a refining capacity of 3.4 million barrels per day and domestic demand of about 2.3 million barrels per day, the country has approximately 1 million barrels per day of surplus capacity for exports.
In August, South Korea set a new record by exporting 5.73 million barrels of clean oil products to Europe. This export included gasoline, diesel, and jet fuel. Furthermore, South Korean refineries have found more opportunities to supply these markets due to increasing demand in Asia-Pacific, especially following a sharp decline in China's exports.
Stable crude feedstock supply and reduced exports from China are among the factors that have strengthened refining margins in this region. China's exports are expected to decrease to around 2 million tons in October, which could impact regional markets.
