ID :
190749
Thu, 06/23/2011 - 17:59
Auther :
Shortlink :
https://oananews.org//node/190749
The shortlink copeid
S. Korea to release 3.46 mln barrels of strategic crude
South Korea will release 3.46 million barrels of its strategic petroleum reserve in a concerted effort to stabilize the world's oil market in the wake of political unrest in some North African and Middle Eastern countries, the government said Thursday.
The move is in response to a decision by the Paris-based International Energy Agency (IEA) that called on 12 member states to release 60 million barrels of oil as part of its Initial Contingency Response Plan, the Ministry of Knowledge Economy said.
The IEA said disturbances in countries such as Libya this year caused production shortages reaching around 132 million barrels by late May. The agency said it called on countries to release their reserves because oil-producing nations such as Saudi Arabia may not be able to produce enough oil to stabilize high international crude prices that have stayed above US$100 per barrel.
The amount of oil that Seoul pledged to release is equal to four days worth of oil used by the country.
The release of the oil may cause prices for local petroleum products to fall by around 35 won, with effects to be felt in about two weeks time, the ministry in charge of the country's energy policies said.
At present, Asia's fourth-largest economy has 107.3 million barrels worth of crude, which is enough to meet the country's needs for 191.3 days.
The IEA's move marks the second time that the agency has asked member countries to release national reserves. The other time occurred following the 2005 Hurricane Katrina disaster.
The move is in response to a decision by the Paris-based International Energy Agency (IEA) that called on 12 member states to release 60 million barrels of oil as part of its Initial Contingency Response Plan, the Ministry of Knowledge Economy said.
The IEA said disturbances in countries such as Libya this year caused production shortages reaching around 132 million barrels by late May. The agency said it called on countries to release their reserves because oil-producing nations such as Saudi Arabia may not be able to produce enough oil to stabilize high international crude prices that have stayed above US$100 per barrel.
The amount of oil that Seoul pledged to release is equal to four days worth of oil used by the country.
The release of the oil may cause prices for local petroleum products to fall by around 35 won, with effects to be felt in about two weeks time, the ministry in charge of the country's energy policies said.
At present, Asia's fourth-largest economy has 107.3 million barrels worth of crude, which is enough to meet the country's needs for 191.3 days.
The IEA's move marks the second time that the agency has asked member countries to release national reserves. The other time occurred following the 2005 Hurricane Katrina disaster.
