South Korea increases Canadian oil imports to diversify energy sources

South Korea is actively diversifying its energy imports to mitigate risks associated with instability in the Middle East. According to data from the Korea Petroleum Association and the Korea National Oil Corporation, Saudi Arabia's share of South Korea's total crude oil imports fell to 29.9 percent between January and August, marking the first time since 2021 that its market share has dropped below 30 percent.

This shift was driven by geopolitical tensions involving Iran and the potential for disruptions in the Strait of Hormuz, which increased transportation costs and oil prices. To secure its energy supply, South Korea has increased imports from the United States, which have maintained a share of over 20 percent since April. Additionally, a June agreement with Canada aims to triple the volume of Canadian crude oil imports this year, alongside increases in liquefied natural gas (LNG) purchases.

The South Korean government aims to reduce its reliance on Middle Eastern oil by half by 2035.