South Korea lifts May crude imports on higher runs

South Korea's crude imports rose in May as refinery runs increased to a nine-month high.

The country imported around 2.767mn b/d of crude in May, higher by 5.1pc from a year earlier, according to data from state-owned KNOC. South Korean refiners operated at about 83.5pc of capacity in May, the highest rate since August 2022 when refiners operated at around 85.4pc of capacity.

Mideast Gulf crude continued to form the bulk of South Korea's crude imports in May, even as the country reduced its intake from its largest supplier Saudi Arabia. South Korea's crude imports from the Mideast Gulf rose by 11.6pc from a year earlier

to 1.963mn b/d in May, representing about 71pc of total crude imports. Crude imports from the UAE saw the largest increase, more than doubling from May 2021.

But South Korea reduced imports from Saudi Arabia in May by 10.6pc from a year earlier

to around 784,000 b/d. South Korean refiners may have reduced their imports of Saudi crude after state-controlled Saudi Aramco raised its May formula prices for Asia-Pacific-bound exports by 5-50¢/bl compared with April, following the unexpected 2 April announcement by Saudi Arabia and seven other Opec+ members about cutting production by a collective 1.16mn b/d from May until the end of the year.

South Korea also increased its purchases of Kazakhstan CPC Blend crude. Imports of the grade rose to 202,000 b/d in May, up by by 97pc from May 2021. But South Korea again did not import any crude from Europe in May, despite resuming imports of European crude in April after a five-month pause.

By Fabian Ng