South Korea's four major oil refiners are exploring Venezuelan crude imports as Middle East conflicts disrupt shipping through the Strait of Hormuz, a Korea Petroleum Association official said. GS Caltex imported 110,000 barrels in June to test its quality, and the other three refiners are weighing purchases of their own. The group is also examining Canada and Australia, and has ruled out U.S. shale oil.
South Korea's four major oil refiners are exploring imports of Venezuelan crude oil as Middle East conflicts disrupt shipping through the Strait of Hormuz, according to a Korea Petroleum Association official. The refiners aim to reduce their dependence on Middle Eastern oil, focusing on price competitiveness and supply stability, the official said.
Among them, GS Caltex imported 110,000 barrels of Venezuelan crude in June to test its quality, the official said. The refiner will assess whether the crude oil suits its facilities and evaluate product yields.
The three other refiners — HD Hyundai Oilbank, SK Innovation, and S-Oil — are also weighing potential Venezuelan crude imports, the official added. Beyond Venezuela, the companies are examining alternative imports from Canada and Australia, and they have ruled out U.S. shale oil because of the smaller operational size of individual suppliers there, the official noted.
South Korea's interest in Venezuelan oil also follows U.S. President Donald Trump's call for oil companies to invest $100 billion in Venezuela and rebuild its energy sector. Several U.S. and multinational oil companies have shown interest in Venezuela this year after the U.S. removed President Nicolas Maduro in a January 3 raid.
Source: Investing.com
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