The government has extended its crude oil swap system with private firms until the end of June amid uncertainties around the Strait of Hormuz. The system was introduced in April to stabilize fuel supplies.
The Ministry of Trade, Industry and Resources announced on June 2 that the government has extended the crude oil swap system with private firms until the end of the month. The system lends stockpiles, mostly Middle Eastern crude, to refiners who agree to restore them once alternative supplies are secured. A total of 21 million barrels have been traded under the system so far. South Korea has secured about 85 percent of pre-war oil supplies for July use and expects no major disruptions in August. Industry Minister Kim Jung-kwan told a Cabinet meeting that supplies secured for August are continuing to increase. The system was initially set to run for two months until the end of May.
