On Monday, South Korea’s state-run oil corporation concluded a pact with Saudi Arabia’s Aramco to store 5.3 million barrels of oil in Ulsan. This agreement gives Korea priority rights to purchase the oil in the event of a supply crisis. The agreement was reached during President Yoon Suk Yeol’s state visit to the Middle Eastern country. Aramco will typically sell the Ulsan reserves to South Korea and other areas. KNOC stated that the deal has increased the country’s energy security in light of the Israel-Hamas conflict. South Korea currently holds 96 million barrels of oil in reserve, enough to cover 120 days of demand. Saudi Arabia made up 33% of South Korea’s crude imports in 2022.
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