• 4 minutes The Federal Reserve and Money...Aspects which are not widely known
  • 8 minutes How Far Have We Really Gotten With Alternative Energy
  • 12 minutes  What Russia has reached over three months diplomatic and military pressure on West ?
  • 5 days European Parliament Members, Cristian Terhes et al, push back against Totalitarian Digital ID and Carbon Tyranny in Europe.
  • 4 days "How Long Will The Epic Rally In Energy Stocks Last?" by Tsvetana Paraskova at OILPRICE.COM
  • 7 days Coincidence of EIA Report Delay? - "I had seen it delayed minutes, and a couple of times a few hours, but don’t recall something like this — do others?" asks Javier Blas
  • 2 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 8 days Demonising fossil fuels has caused major grid problem in Australia
  • 7 days "...too many politicians believe things that aren’t true." says Robert Rapier
  • 7 days Welcome to Technocracy - The New World Energy Order... "1000s Of Sydney Homes Plunged Into Darkness As Aussie 'Price Cap' Policy Sparks Energy Shortage"

Korean Crude Oil Imports from the North Sea to Fall by Half due to Tax Change

Over the past few years South Korea has enjoyed a good trade agreement with European Oil Producers working in the North Sea, but that is all about to change as the IEA expects imports to drop due to a tax change.

Oil produced in the Middle East is obviously much closer to South Korea than crude produced in Africa, Europe, or America. So in order to encourage the use of a diverse number of sources for its imported oil, and not rely solely on the Middle East, various schemes have been set up to benefit Korean refiners that decide to import from other regions.

South Korea is currently the world’s fifth largest buyer of crude oil, and signed a trade agreement with the EU in July 2011 that offered an exemption from a 3 percent tax that other crude oil customers have to pay. Korean refiners then receive a tax rebate for any refined products that they export, and last but not least, the government reimburses 90% of the difference in transit costs of imports shipped from around the world compared to the Middle East (meaning that they aren’t punished for buying crude oil from further away).

Related article: South Korea Set to Launch the World’s Most Ambitious Emission Trading Scheme

The IEA, in its Oil Monthly Report stated that unfortunately, from the beginning of next month the Korean buyers importing crude from the EU will no longer be able to claim the rebate. “The economic benefits that fuelled brisk North Sea-Korea trade over the past few years will be reduced.”

Analysts at JBC Energy GmbH, have predicted that Korean imports of North Sea crude will fall from 110,000 barrels a day in 2012, to just 55,000 barrels a day in the future.

By. Joao Peixe of Oilprice.com

Related article: South Korea Set to Launch the World’s Most Ambitious Emission Trading Scheme

Join the discussion | Back to homepage

Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News