South Korea is seeing growing interest from Middle Eastern oil producers as they seek crude oil storage space at the country's oil depots, according to a South Korean official and an industry expert.
South Korea's oil storage system, the sixth-largest in the world, has become an attractive destination for oil producers amidst the prolonged blockade of the Strait of Hormuz—a crucial maritime route handling about 20% of global crude oil.
The move reflects efforts by Middle Eastern countries to diversify crude storage locations and reduce risks of supply disruptions due to regional tensions. Storing oil in South Korea also brings producers closer to major consumer markets in Northeast Asia.
No details on the scale or duration of storage lease contracts have been disclosed yet.
