SEOUL, Jan 7 -- South Korea will consider releasing oil from its strategic oil reserves if there is a crisis on securing oil supplies amid escalating tensions in the Middle East following last week's killing of a top Iranian general by a US drone strike, reported Yonhap News Agency, citing a senior government official Tuesday.
Vice Finance Minister Kim Yong-beom told a meeting with economy-related vice ministers that the country is fully prepared to deal with any fallout from the heightened tensions in the Middle East.
The government will closely monitor financial markets and swiftly take actions if volatility rises in the wake of the Middle East tensions, Kim said.
As of end-November, the amount of the government's oil reserves came to 96.5 million barrels. When considering the savings from the private sector, the amount is estimated at 200 million barrels.
Kim said there is no short-term impact on South Korea's imports of oil, but the country still needs to closely monitor the situations, considering its heavy dependency on the Middle East for energy.
The Middle East accounted for 70 per cent of South Korea's imports of crude over the January-November period of 2019. That of liquefied natural gas (LNG) was estimated at 38 per cent.
Tensions have been sharply rising since last week's killing of Gen. Qassem Soleimani, arguably Iran's most powerful commander, by a US air strike.
Global oil prices have soared, raising concerns that a much-awaited recovery in exports may be further delayed.
With the Middle East tensions knocking investor sentiment, South Korean stocks dropped and the won currency weakened Monday.
The stock market's main KOSPI index dived 0.98 per cent to close at 2,155.07 on Monday.
Although oil prices have jumped, there has not been any supply disruption, despite escalating tensions in the Middle East.
"The government will spare no efforts to stabilise the demand and supply situation and prices," Kim told reporters after the meeting.
The strategic oil reserves cover about 180 days of South Korean oil demand, Kim said.
-- BERNAMA
NH
BERNAMA provides up-to-date authentic and comprehensive news and information which are disseminated via BERNAMA Wires; www.bernama.com; BERNAMA TV on Astro 502, unifi TV 631 and MYTV 121 channels and BERNAMA Radio on FM93.9 (Klang Valley), FM107.5 (Johor Bahru), FM107.9 (Kota Kinabalu) and FM100.9 (Kuching) frequencies.
Follow us on social media :
Facebook : @bernamaofficial, @bernamatv, @bernamaradio
Twitter : @bernama.com, @BernamaTV, @bernamaradio
Instagram : @bernamaofficial, @bernamatvofficial, @bernamaradioofficial
TikTok : @bernamaofficial
