Refining industry in crude oil import line diversification plan…Asia and American crude oil import to be expanded
Park Seul Gee | seul@ | 2017-04-26 10:48:16
Korean oil refineries are planning to diversify crude oil import lines in earnest this year. In the midst of reliance on crude oil from the Middle East, 80% of the country`s crude oil imports are used to reduce potential risks such as unstable conditions in the Middle East and to introduce cost-effective crude oil.
According to the Korea National Oil Corporation (KNOC) on April 25, SK Energy introduced 6.63 million barrels of Russian crude oil in the first quarter of this year. This was a 53.3% increase from the same period of the previous year, and the increase in imports of crude oil from the Middle East increased sharply from 6.3% in the same period.
GS Caltex increased crude oil imports from Asia and the Americas instead of reducing Middle East crude oil. The company has imported crude oil from Russia, Kazakhstan and Indonesia in 59.57 million barrels of crude oil in the first quarter of this year, up 40.7 % from the same period last year. In particular, the company imported about KRW 2 million 3,000 barrels of Mexican crude oil, which is about five times higher than the US crude oil imports in the first quarter of last year. In contrast, Middle Eastern crude oil has been imported 53,248,000 barrels, down 7.3% from the same period last year.
S-Oil, which has only imported crude oil from the Middle East last year, began importing 660,000 barrels of crude oil from Algeria in February.
Hyundai Oilbank increased imports of crude oil from Middle East to 26.439 million barrels, which is 10.4% less than the same period of the previous year. But Mexico`s crude oil increased by 23.7% to 485.4 million barrels. In particular, UK crude oil, which was not introduced last year, was imported at 3.394 million barrels in the first quarter.
SK Innovation, GS Caltex, and Hyundai Oilbank are planning to introduce crude oil in Russia and the United States outside the Middle East in the second quarter of this year. SK Innovation will supply 1 million barrels of crude oil from the Russian oil company Lukoil in February this month. Hyundai Oilbank will introduce 1 million barrels of crude oil from the US Shell from the US Shell next month and 1 million barrels of oil in June. GS Caltex will import 700,000 barrels of crude oil from Russia in June.
This is because oil refiners diversify their oil imports as their earnings are largely driven by rising refining margins. Therefore, the introduction of economical crude oil is emerging as the key to profit improvement.
In fact, the difference between the prices of Brent and Dubai oil in April last year was USD 4.4 per barrel, but it has continued to be around USD 1 since January. The price of US West Texas oil was USD 2.6 higher than Dubai oil as of May last year, but Dubai oil price was USD 1.5 lower than West Texas oil last month.
An expert from the refinery industry stated, "As the Middle Eastern oil producers are pushing for production cuts, the price of crude oil from the Middle East is on the rise this year, considering the economy. We are monitoring the situation continuously."
By Park Seul Gee seul@
[ copyright ⓒ The Digitaltimes ]
According to the Korea National Oil Corporation (KNOC) on April 25, SK Energy introduced 6.63 million barrels of Russian crude oil in the first quarter of this year. This was a 53.3% increase from the same period of the previous year, and the increase in imports of crude oil from the Middle East increased sharply from 6.3% in the same period.
GS Caltex increased crude oil imports from Asia and the Americas instead of reducing Middle East crude oil. The company has imported crude oil from Russia, Kazakhstan and Indonesia in 59.57 million barrels of crude oil in the first quarter of this year, up 40.7 % from the same period last year. In particular, the company imported about KRW 2 million 3,000 barrels of Mexican crude oil, which is about five times higher than the US crude oil imports in the first quarter of last year. In contrast, Middle Eastern crude oil has been imported 53,248,000 barrels, down 7.3% from the same period last year.
S-Oil, which has only imported crude oil from the Middle East last year, began importing 660,000 barrels of crude oil from Algeria in February.
Hyundai Oilbank increased imports of crude oil from Middle East to 26.439 million barrels, which is 10.4% less than the same period of the previous year. But Mexico`s crude oil increased by 23.7% to 485.4 million barrels. In particular, UK crude oil, which was not introduced last year, was imported at 3.394 million barrels in the first quarter.
SK Innovation, GS Caltex, and Hyundai Oilbank are planning to introduce crude oil in Russia and the United States outside the Middle East in the second quarter of this year. SK Innovation will supply 1 million barrels of crude oil from the Russian oil company Lukoil in February this month. Hyundai Oilbank will introduce 1 million barrels of crude oil from the US Shell from the US Shell next month and 1 million barrels of oil in June. GS Caltex will import 700,000 barrels of crude oil from Russia in June.
This is because oil refiners diversify their oil imports as their earnings are largely driven by rising refining margins. Therefore, the introduction of economical crude oil is emerging as the key to profit improvement.
In fact, the difference between the prices of Brent and Dubai oil in April last year was USD 4.4 per barrel, but it has continued to be around USD 1 since January. The price of US West Texas oil was USD 2.6 higher than Dubai oil as of May last year, but Dubai oil price was USD 1.5 lower than West Texas oil last month.
An expert from the refinery industry stated, "As the Middle Eastern oil producers are pushing for production cuts, the price of crude oil from the Middle East is on the rise this year, considering the economy. We are monitoring the situation continuously."
By Park Seul Gee seul@