South Koreans Snap up Crude

By: Jon Babyak / August 3, 2018

There’s been a lot of talk about the U.S. increasing its domestic crude oil production for the sake of exportation, but where exactly is that crude oil being shipped to?  A large portion of the exports will be going to the world’s fifth-largest oil importer, South Korea.  South Korean imports of U.S. crude are expected to hit all-time highs in September and October, with 6 million barrels coming in each month.   

US-South Korea

South Korea has recently suspended all purchases of Iranian crude (due to recent sanctions), and they are increasingly looking for cheaper alternatives than other Middle Eastern crude.  According to Kim Kae-kyong, a research fellow at Korea Energy Economic Institute, “South Korean refiners are turning to U.S. crude because of Iran sanctions…They will bring in more U.S. crude in the second half of the year because a wider WTI-Dubai spread is making U.S. crude purchases economically viable.”  Many people also believe that Mars crude (from the Gulf of Mexico) is a higher quality product that Basra Light (from Iraq), which gives an additional advantage to the U.S. to replace the barrels that have been cut off from Iran.

As the U.S. becomes a more prominent oil exporter, look for South Korea to be an increasingly important importer.

Categories: US crude, Crude Exports, South Korea

Jon Babyak

Written by

Jon Babyak

Each customer has their own unique fueling needs, so by listening to their issues I can come up with a customized solution. I take pride in providing personal customer service to fulfill each customer's long-term requirements.

Guttman Energy Daily Market Update Disclaimer – The information contained in this market update is derived from sources believed to be reliable; however this update could include technical inaccuracies or typographical errors and Guttman Energy does not guarantee the accuracy, completeness or reliability of this update. FURTHERMORE, THIS UPDATE IS PROVIDED "AS IS," WHERE IS, WITH ALL FAULTS AND WITHOUT ANY WARRANTY OR CONDITION OF ANY KIND, EXPRESS, IMPLIED OR STATUTORY. GUTTMAN ENERGY ALSO SPECIFICALLY DISCLAIMS ALL EXPRESS AND IMPLIED WARRANTIES. YOU USE THIS UPDATE AT YOUR SOLE RISK. This update and any view or comment expressed herein are provided for informational purposes only and should not be interpreted in any way as recommendation or inducement to buy or sell products, commodity futures or options contracts.


Subscribe to our blog

Price Feed

Stay up-to-date on current fuel prices and market trends with our NYMEX price feed (15 minute delay to the live market).

© 2018 Market data provided and hosted by Barchart Market Data Solutions. Fundamental company data provided by Morningstar and Zacks Investment Research. Information is provided 'as-is' and solely for informational purposes, not for trading purposes or advice, and is delayed. To see all exchange delays and terms of use please see disclaimer.


Contact Us