South Korea announced it will release 7.23 million barrels of oil reserves, the largest volume the country has to export so far under international moves, to help bring down high energy prices.
The South Korean Ministry of Trade, Industry, and Energy said that the decision sought to provide stability in the energy market both locally and internationally. The ministry also said that the move aimed to reduce the burden on the people amid the ongoing war in Ukraine.
South Korea can still sustain its local market and will be able to have oil reserves for more than 90 days without crude oil imports, the ministry said.
On April 1, the ministry announced that the country posted a record high export in March. “Overseas shipments of petrochemicals and petroleum products inched up 0.8 percent to $4.1 billion and 0.3 percent to $3.0 billion, respectively, thanks to rising oil prices,” it reported.
Member nations of the International Energy Agency (IEA) also agreed last week to release 120 million barrels of oil from their respective reserves. The United States said it will release 60.56 million barrels. Last month members of IEA also vowed to release 60 million barrels of oil.
Prices of Dubai crude oil, South Korea’s benchmark, reached $103.79 per barrel Wednesday. Prices of the international benchmarks also increased from $77.78 in December to $101.07 per barrel.
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