South Korea secures 74.62 million barrels of crude for May-- presidential office

SEOUL- South Korea has secured 74.62 million barrels of crude oil for May, equivalent to about 87% of its average monthly imports last year, the presidential Blue House said on Friday, as Seoul seeks to stabilize energy supplies amid conflict in the Middle East.

The country has also reduced its reliance on crude imports from the Middle East to 56% from 69% by increasing shipments from the United States and Africa, presidential chief of staff Kang Hoon-sik said.

• Kang said the government viewed stronger-than-expected first quarter economic growth as evidence of Seoul's resilience despite geopolitical risks from the Middle East conflict, citing robust gains in semiconductor production and exports as well as swift government efforts to cushion energy supply disruptions.

• South Korea's economy expanded 1.7% quarter-on-quarter and 3.66% year-on-year in the first quarter, its fastest pace since the third quarter of 2020.

• On energy supplies, Kang said the government was not overly concerned about crude oil availability in May, but warned that industry was still experiencing supply concerns for naphtha and downstream products, including plastics and plastic bags.

• "The government is closely monitoring supply conditions for key materials on a daily basis and is preparing measures in advance by forecasting conditions one month and three months ahead," he said.

• Shipments of about 2.1 million metric tons of naphtha, secured during his recent trip to Kazakhstan and the Middle East as a special envoy, will arrive in South Korea gradually starting in late April, which is expected to improve supply conditions from next month, he said.

• Kang also said that concerns remained over asphalt supplies, which are refined from crude oil, prompting the government to review adjusting construction schedules to mitigate potential disruption.