SOUTH KOREA'S LEE said the country's reliance on Middle East crude has fallen to
about 50% from as high as 70% within months after sending oil envoys, stepping
up crude diplomacy, diversifying import sources and subsidizing long-haul
transport. Seoul has used strategic reserve swap arrangements to keep crude
flows stable without drawing down stocks. Domestic refined fuel prices and
supply remains stable, aided by a maximum-price limit and export volume controls.
The government will continue import diversification and work to keep shipping
lanes open and vessels and crews safe, but dependence still sits near 50% and
the conflict in the Middle East remains a source of market risk.
