Government Holds 'Oil Market Inspection Meeting'...Reviewing Impact of UAE Attack and More

[Sejong=Asia Economy Reporter Kwon Haeyoung] As international oil prices surged due to attacks on oil facilities in the United Arab Emirates (UAE), the government launched an emergency inspection of the oil market.

The Ministry of Trade, Industry and Energy held an 'Oil Market Inspection Meeting' on the 19th to review the domestic supply and demand situation amid the recent rise in international oil prices.

This meeting was organized to check the domestic oil supply and demand situation in response to rising international oil prices, global geopolitical risks, and the cold wave during the winter season. With increased travel demand expected ahead of the Lunar New Year holiday, measures to minimize the impact of rising international oil prices on the domestic market were also discussed.

The domestic oil industry stated that despite disruptions in crude oil production in Kazakhstan and drone attacks by Yemeni rebels on the UAE, domestic crude oil imports are proceeding without issues, and they are making every effort to manage supply plans, including securing alternative crude oil if necessary.

The Korea Energy Economics Institute and Korea National Oil Corporation forecast that oil demand remains robust despite the spread of the COVID-19 Omicron variant and is expected to remain strong throughout the remaining winter period. This is due to factors such as OPEC Plus's adjustment of production increase speed, maintenance of production cuts, and production disruptions in some oil-producing countries, which are driving up international oil prices.

The Ministry of Trade, Industry and Energy urged efforts to minimize the impact of sharp oil price increases by prioritizing stability in the domestic distribution market during the Lunar New Year holiday period, including continued reflection of fuel tax reductions.

Yoo Beopmin, Director General of Resource Industry Policy at the Ministry of Trade, Industry and Energy, said, "The imbalance in global oil supply and demand may persist for some time," adding, "We will carefully manage domestic oil supply and demand to prevent any disruptions and cooperate with the industry and related agencies to ensure stable domestic prices before and after the Lunar New Year holiday."