Crude oil share from the Middle East in South Korea imports for the first half of the year is touching the lowest level in more than three decades, showing unquestionably profound cuts in output by Middle Eastern oil producers by reason of global pandemic and OPEC+ production cuts extended agreement. On the total crude imports in January-June, 67% of the crude oil is from the Middle East, approximately 1.91 million barrel/day, down 72.8% year-on-year and will touch the country’s lowest share of the Middle East crude oil since 1988, with 62.1% in total crude demand.
The lower share occurs in reason of the deepened output cuts and weakened South Korean demand for Middle East crude, while U.S crude demand did not fall as sharp. The country ranked as the world’s fifth-biggest crude importer, typically imports 70-80% of its total demand from Middle East regions, mainly Saudi Arabia, Iraq and Kuwait. Meanwhile, the import share from American regions including U.S and Mexico, increased the percentages to 19.6% this half-year. And for the outlook, the Middle East share will increase again to around 70% next month as U.S crude production falls while South Korea’s domestic demand recovers.
