As of 3 p.m. on the 18th, the government raised the resource security crisis alert for crude oil from "interest" to "caution." The move follows the materialization of an energy supply crisis as international oil prices surged due to the prolonged Middle East crisis and transportation conditions worsened because of the closure of the Strait of Hormuz.
The Ministry of Trade, Industry and Resources said the following met the criteria for issuing a "caution" alert under the Notice on Securing National Resource Security: ▲ heightened instability in major oil-producing countries in the Middle East ▲ instability in oil transport routes due to the closure of the Strait of Hormuz ▲ a roughly 40% surge in international oil prices since the situation began (Brent, as of the 17th).
The resource security crisis alert has four levels: interest, caution, alert, and serious. With the alert raised to "caution," the Ministry of Trade and Industry (MOTI) will begin drawing up a specific release plan for 22.46 million barrels of strategic reserves allocated to Korea through coordination with the International Energy Agency (IEA). The timing and volume of the release will continue to be discussed with the IEA Secretariat.
Demand management measures will also be strengthened. The Ministry of Trade and Industry (MOTI) said it will implement mandatory energy-saving measures in the public sector while introducing voluntary campaigns in the private sector and, if necessary, mandatory demand-reduction measures. An odd-even driving scheme by license plate for vehicles or restrictions on gasoline and diesel exports are expected to be introduced.
Meanwhile, in the case of natural gas, international prices have surged since Qatar's declaration of "force majeure" on the 5th, but the current "interest" level will be maintained based on storage inventories above the statutory minimum and secured alternative volumes available through the end of the year. A force majeure clause is a mechanism that exempts liability or delays performance of contractual obligations when uncontrollable events such as war or natural disasters occur.
Kim Jung-kwan, Minister of the Ministry of Trade and Industry (MOTI), said, "We will respond swiftly to changes in the situation and achieve the two goals of stabilizing crude oil supply and people's livelihoods at the same time."