• 3 minutes Nucelar Deal Is Dead? Iran Distances Itself Further From ND, Alarming Russia And France
  • 5 minutes Don Jr. Tweets name Ukraine Whistleblower, Eric Ciaramella. Worked for CIA during Obama Administration, Hold over to Trump National Security Counsel under Gen McCallister, more . . . .
  • 9 minutes Shale pioneer Chesepeak will file bankruptcy soon. FINALLY ! The consolidation begins
  • 12 minutes China's Blueprint For Global Power
  • 2 hours Who writes this stuff? "Crude Prices Swing Between Gains, Losses"
  • 2 hours Pioneer's Sheffield in Doghouse. Oil upset his bragging about Shale hurt prices. Now on campaign to lower expectations, prop up price.
  • 10 hours Climate Change Consensus Shifts in Wind, But Gas Is Still the Right Move
  • 11 hours World oil demand will keep growing until 2030, climate-damaging emissions longer, says IEA
  • 2 mins EU has already lost the Trump vs. EU Trade War
  • 5 hours Iran Finds New Oil Field With Over 50 Billion Barrels: Rouhani
  • 3 hours Atty General Barr likely subpeona so called whistleblower and "leaker" Eric Ciaramella
  • 2 hours Joe Biden, his son Hunter Biden, Ukraine Oil & Gas exploration company Burisma, and 2020 U.S. election shenanigans
  • 1 hour Trump On Farage's Radio Show ...
  • 1 hour Does .001 of Atmosphere Control Earth's Climate?!
  • 6 hours Iran's Master Plan?
  • 3 mins China's Renewables Boom Hits the Wall
  • 5 hours Saudi Aramco IPO Will Not Save Kingdom

Breaking News:

Oil Rebounds On Surprise Crude Draw

South Korea To Import Record U.S. Oil Volumes In September, October

Oil refinery

South Korea’s imports of U.S. crude oil are expected to hit all-time highs in September and October, as the world’s fifth-largest oil importer cuts off Iranian oil imports and looks for cheaper alternatives for other Middle Eastern crude grades, Reuters reported on Thursday, citing trade flow data and four sources familiar with the matter.

Since last month, U.S. crude oil loadings en route to South Korea have been rising, and are expected to hit a record-high of 6 million barrels in each of the months of September and October, according to Reuters’ sources and Thomson Reuters Eikon trade flow data.

In the first half of 2018, South Korea’s oil imports from the United States jumped by more than four times from the same period last year, to a total of 14.1 million barrels from January to June 2018, data from Korea National Oil Corp shows. This translates into an average monthly oil import rate of 2.35 million barrels of U.S. crude oil to South Korea, according to Reuters estimates.

South Korea has been a regular customer of U.S. crude since the U.S. restrictions on oil exports were lifted in 2015. During the last two months for which EIA data is available, U.S. exports to South Korea stood at 102,000 bpd in April, and rose to 113,000 bpd in May.

The two key reasons for rising South Korean imports this summer are the U.S. sanctions on Iran and the cheaper U.S. oil compared to Middle Eastern grades.

Related: The Next Trade War Escalation Will Hit U.S. Oil

Due to the sanctions on Tehran, South Korea suspended purchases of all Iranian oil last month, after having slashed its Iranian oil imports by 41 percent to 183,000 bpd in June compared to June last year.

South Korean refiners are also seeking cheaper alternatives to Iraq’s Basra Light for example, and the wider WTI-Dubai spread makes U.S. oil imports economically viable.

“The quality of Mars is better than Basra Light,” one of Reuters’ sources said, adding that the Mars sulfur content is slightly lower than for Basra Light, which makes it easier to process.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play