South Korea is pulling more crude tankers its way – as a shift in refinery feedstock sourcing evolves from summer flows. Vessels departing key Middle Eastern export hubs - Ras Tanura (Saudi Arabia) and Basrah (Iraq) - have recently been increasingly bypassing popular destinations such as China and redirecting toward South Korea’s core refining ports: Ulsan, Daesan, and Yeosu.
The change comes after a sharp drop in Middle East exports to Korea in September. Wood Mackenzie tracking showed Middle East crude imports to Korea fell from 2.41 million b/d in August to 1.61 million b/d in September - a 33% decline. The contraction came as global oil prices climbed and the won weakened, nudging Korea’s import price index up 0.2% month-on-month.
Additionally, Korean refiners are broadening their crude slate. Wood Mackenzie has also tracked several U.S.-origin cargoes that are scheduled to discharge in early November, signaling a strategic pivot that aligns with Korea’s energy security agenda and its $100 billion commitment to U.S. energy under recent trade agreements.
