SEOUL: Iraq became South Korea’s third-largest source of oil in the first half of this year, boosting shipments to the highest level since at least 2000 amid a global battle between producers for market share.
The North Asian nation’s purchases of Iraqi crude soared 73 percent to 8.25 million metric tons through June in 2015, data compiled by Bloomberg from the Korea Customs Service showed. Shipments from Kuwait and the United Arab Emirates slipped during the period, while top supplier Saudi Arabia’s sales gained 9 percent, according to the data.
Iraq, the second-largest OPEC member, is exporting a record amount of crude as a global glut driven by a U.S. shale boom prompts producers from Saudi Arabia to Mexico to pursue strategies to defend market share. Brent oil has fallen about 50 percent from last year’s high in June as the Organization of Petroleum Exporting Countries refrained from cutting output amid the highest level of American supply in more than three decades.
Imports by South Korea, which relies on the Middle East for more than 80 percent of its crude, climbed about 9 percent to 10.67 million tons in June from a year earlier, the data show. Shipments from Iraq more than doubled to 1.85 million tons, the highest since August 2012, while Saudi supplies fell 11 percent to 2.9 million tons.
The Asian nation’s total crude oil purchases in May rose to 12.92 million tons, the highest level since February 2001, with Saudi shipments at 4.73 million, the most in data compiled by the Korean agency since 2000.
Imports from Iran fell to 2.94 million tons in the first half of the year from 3.11 million a year earlier, with June supplies 20 percent lower at 485,182 tons, customs data showed.
The Persian Gulf nation may expand exports by 200,000 to 400,000 barrels a day next year after it reached a deal Tuesday with world powers over its nuclear program, Goldman Sachs Group Inc. said in an e-mailed report.
Shipments from the U.S. were 187,897 tons from January to June from almost none a year earlier, the Korean customs data showed. SK Innovation Co., the nation’s biggest refiner, has more than double the imports of U.S. condensate to about 900,000 barrels in 2015 from last year.
South Korean oil demand may grow 3 percent to 2.41 million barrels a day in 2015, according to a July 10 report by the Paris-based International Energy Agency. Demand was 2.46 million barrels per day in 2014, trailing China, Japan and India, according to BP Plc data.
Brent, the benchmark for more than half the world’s oil, rose 0.5 percent to $58.78 a barrel in London at 1:51 p.m. Seoul time. West Texas Intermediate crude, the U.S. marker, traded 0.6 percent higher at $53.34.
