Gov't extends public-private crude oil swap system until end of June

An aerial view of Korea National Oil Corporation’s crude oil storage facility in Seosan, South Chungcheong [KOREA NATIONAL OIL CORPORATION]

The government has extended the operation of its crude oil swap system with private firms until the end of this month amid continuing uncertainties surrounding the Strait of Hormuz, a critical oil shipping route, the Ministry of Trade, Industry and Resources said on Tuesday.

The government introduced the oil swap system in April in a bid to stabilize domestic fuel supplies following the outbreak of the Iran war.

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Under the system, the government has been lending some of the crude stockpiles from its oil reserves, mostly Middle Eastern crude, to oil refiners under an agreement that they will later restore the stock when alternative supplies are secured. The system was initially a two-month operation set to end in May.