Seoul: The state-run Korea National Oil Corp. (KNOC) announced it is closely monitoring the global oil supply and preparing for the potential release of oil reserves following reports of Iran's plans to close the Strait of Hormuz. "We began 24-hour monitoring of changes in international oil prices and the circumstances surrounding the domestic and overseas petroleum markets, while checking our step-by-step response system," the KNOC stated in a press release.
According to Yonhap News Agency, the KNOC has also conducted an emergency on-site inspection to prepare for the potential release of national oil reserves. South Korea currently possesses oil reserves sufficient for approximately 206.9 days, surpassing the volume recommended by the International Energy Agency.
Concerns have escalated over possible global oil supply disruptions after Iran's state-run Press TV reported that the country's parliament approved a plan to close the Strait of Hormuz. This key waterway is crucial for shipping crude oil from the Persian Gulf worldwide, and the closure is in response to attacks on Tehran's nuclear facilities by Israel and the United States.
The Hormuz Strait facilitates the transport of about 20 million barrels of oil daily, accounting for approximately 20 percent of global oil consumption, according to a recent report by the U.S. Energy Information Administration. In anticipation of potential oil shocks, the KNOC has signed joint stockpiling agreements covering a combined 23.13 million barrels with seven global oil companies, including those in the Middle East, securing priority in purchasing contracted volume during supply disruptions.
Kim Dong-sub, president and CEO of the KNOC, emphasized, "As a state-run oil company at the forefront of crisis response, the KNOC will thoroughly check our readiness and come up with a meticulous execution plan for emergency measures to respond to a possible energy crisis."