SEOUL: Following the closure of four of South Korea’s nuclear reactors and three of the country’s liquefied natural gas (LNG) plants in response to last week’s earthquakes, the country is said to be likely to see a temporary increase in imported fuel oil demand, UAE media reports. Most of South Korea’s oil imports are noted to come from Arabian Gulf countries, with the UAE accounting for about 15 percent of the country’s average daily consumption.
South Korean demand is already said to be up due to a summer heat wave and economic stimulus programme, with crude oil demand having reached 2.3 million barrels per day in July, a 5.5 percent year on year increase.
Despite this, a boost in South Korean demand for refined oil is said to be expected to be welcome news to flooded Asian markets. “Stubborn oversupply in the Asian diesel market seems no closer to ending,” according to BMI Research. “A dramatic upsurge in Chinese exports alongside brimming stockpiles at key storage hubs – particularly Singapore – maintain the oversupply in the regional market and hurt margins.”
