South Korea has increased the proportion of petroleum products that will comprise the stocks of oil that it plans to release from emergency reserves, in line with the preferences of local refiners, Korea National Oil Corp. said Wednesday.

The planned release of emergency supplies by the world's fifth-largest crude importer comes as the International Energy Agency says an initiative to tap strategic stockpiles is having the desired effect of combating high global oil prices, and it could also help keep local fuel prices in check after a temporary price cut expires later Wednesday.

The volume of oil products in the release of stockpiles has been adjusted to 1.519 million barrels from 1.469 million barrels previously, while the volume of crude has been reduced to 1.948 million barrels from 1.998 million barrels, a spokesman with the state-run oil company said by phone.

South Korea plans to release a total of 3.467 million barrels, in coordination with the International Energy Agency's plan to release a total of 60 million barrels globally to combat persistently high oil costs.

It could also help curb local fuel prices after a three-month-long, KRW100-a-liter cut to diesel and gasoline prices expires later Wednesday.

The IEA said Monday that it expects the bulk of the 60 million barrels of crude and products to be released from emergency stocks to be sold, and said the move is already having the intended effect on oil markets.

Amid the higher supply, Asian oil refiners aren't rushing to get their hands on extra oil being offered either by the IEA or by Saudi Arabia , which has offered higher-than-contracted term supplies for August loading.

An executive with an Indian refiner and a second executive with a South Korean refiner said their companies won't take additional Saudi cargoes.

South Korea had released 29% of the planned volume of oil products early Wednesday local time, and all of the crude and products will be released by end-July, the KNOC spokesman said.

The nation's second-largest oil refiner, GS Caltex Corp., which had separately requested an emergency supply of diesel in June, the planned release of 870,000 barrels is to be completed by Thursday, another spokesman with KNOC said.

Of the 870,000 barrels, 190,000 barrels will be counted as a part of South Korea 's overall release of strategic stockpiles, although more barrels could be directed to GS Caltex later, he said.

Διαβάστε ακόμα