The exports of petroleum products by major refiners in Korea hit a record high of USD27.95 billion in the first half of this year on the back of higher oil prices and strong demand recovery amid eased COVID-19 restrictions, said Koreatimes.
The outbound shipments by SK Energy, GS Caltex, S-Oil and Hyundai Oilbank represent a 97.6 percent increase from a year earlier and surpassed the previous record high of USD27.7 billion in 2012, according to a latest report by the Korea Petroleum Association. The robust growth came as the recent rise in global oil prices gave a boost to export unit prices, and the reopening of borders around the world after tight COVID-19 restrictions helped fuel demand for petroleum products, the report said.
The refiners in Korea also "strategically" diversified the regions to countries like Australia and the Philippines that experienced supply shortages amid the COVID-19-driven border controls, the report noted. The export volume rose 12.8 percent on-year to 220.9 million barrels in the January-June period, with the export unit prices of petroleum products jumping 75.3 percent to USD126.6 per barrel in the same period.
Diesel exports rose 8.8 percent to 92.9 million barrels, with its export value soaring 106.2 percent to USD12.56 billion due to the supply disruptions amid the Russia-Ukraine conflict. Exports of jet fuel also grew 40.1 percent to 35.27 million barrels, amounting to USD4.68 billion, up 171.3 percent from the previous year, boosted by strong global cargo demand amid the pandemic.
By country, Australia became the top buyer of Korean petroleum products, accounting for 16.2 percent in terms of export value, followed by Singapore with 12.2 percent, the United States at 9.3 percent, the Philippines at 9 percent and China with 8.6 percent, according to the report.
As per MRC, a sudden crash in global gasoline prices in the past two weeks has dented refiners' profits, pushing up inventories in key trading hubs around the world while looming exports from China and India also add to pressure on growing stockpiles. Refiners will be forced to cut gasoline output to safeguard themselves against losses and switch to producing more profitable fuels, traders say, but summer demand is also being hurt by high pump prices in the United States and Europe, and by instability and easing seasonal demand in some parts of Asia.
mrchub.com