The government said on the 7th it expects to secure 210 million barrels of crude oil from May to July.
Moon Shinhak, Vice Minister of the Ministry of Trade, Industry and Resources, said at a briefing that "the expected crude oil import volume for May–July is more than 80% of an average year," adding, "We judge that if we combine swap volumes, internationally co-held strategic reserves, and private inventories, we can fully meet demand during this period."
According to the Ministry of Trade and Industry (MOTI), more than 75 million barrels are slated to be imported in May, more than 60 million barrels in June, and more than 70 million barrels in July. The ministry said the largest shares of imports will come from Saudi Arabia, the United States, and the United Arab Emirates (UAE), in that order.
Moon, the Vice Minister, avoided a direct answer on the timing of releasing strategic reserves. The deadline to release reserves under an agreement with the International Energy Agency (IEA) is June 9. Moon said, "We have been making maximum use of the swap system instead of releasing reserves," adding, "Because it is important to assess how long the Middle East crisis may persist, it is difficult to say at what point and in what volume we would release."
The government also said the naphtha supply-demand balance is recovering. Moon, the Vice Minister, said, "From before the crisis fully escalated, the government helped secure naphtha volumes through sending special envoys, supporting import expenses via a supplementary budget, and imposing export restrictions," adding, "corporations have also minimized supply disruptions by expanding imports, raising plant operating rates, and redirecting export volumes to the domestic market."
He added, "As a result, naphtha supply in May is expected to improve compared with March–April and reach more than 90% of normal levels, and plant operating rates are projected to recover to around 90% of prewar levels."
However, he said, "If the war drags on, we are also keeping in mind the possibility of supply chain disruptions due to crude oil supply instability and rising naphtha prices," adding, "We will review measures to ease import expense burdens on petrochemical corporations and make every effort to secure additional import volumes through high-level cooperation with major countries."