The Korean government will expand the nation’s crude oil reserves as low oil prices continue. As of the end of 2019, Korea’s crude oil reserves were 96.5 million barrels.
Korea National Oil Corp. (KNOC) announced on April 9 that it would purchase 640,000 barrels oil for reservation in 2020, 280,000 barrels more than initially planned. The corporation will purchase 490,000 barrels of crude oil and 150,000 barrels of diesel.
The government’s 4th Petroleum Reserve Plan (from 2014 to 2025) requires the corporation to secure oil reserves of 170 million barrels by 2025. Under the plan, KNOC initially planned to purchase 360,000 barrels of oil in 2020.
However, as crude oil prices plunged to around US$20 a barrel, the government decided to increase the amount to 640,000 barrels this year and make an early purchase by taking advantage of low oil prices.