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South Korea will consider releasing oil reserves if the situation in Saudi Arabia worsens

September 16, 2019

SEOUL, Sep. 16 (Reuters / EP) –

The Government of South Korea has said Monday that it will consider releasing crude oil from its strategic reserves if the oil import situation worsens as a result of the attacks that Saudi Arabia has suffered by the Huthi rebels this weekend.

The message of the South Korean Executive arrives after Monday raised crude oil prices to maximum levels after attacks on Saudi oil facilities carried out over the weekend by Huthi rebels.

The South Korean Ministry of Energy has said in a statement that it does not foresee a short-term impact on oil supply guarantees from Saudi Arabia. However, if the situation worsens, he has predicted that suspensions could be registered in the supply of crude.

The president of the United States, Donald Trump, has authorized the use of emergency reserves of US crude to guarantee continuity of supply after the Huthis attacks against Saudi oil infrastructures, which have resulted in the suspension of 5 percent of world production .

South Korea, the fifth largest importer of crude oil in the world, currently has 96 million barrels of oil and refined products in its reserves. Of the total reserves, the country has 82 million barrels of crude oil and the rest are refined products such as gasoline, diesel and naphtha.

“The government will do everything possible to stabilize demand, supply and prices, such as measures such as studying the release of oil reserves if the situation worsens,” said the Ministry of Energy of South Korea. The reserves have the capacity to cover oil requirements for 90 days.