Q1 Petroleum Product Exports Reach Record High... Driven by Jet Fuel

126.9 Million Barrels Exported... 7.8% Increase YoY
"Strengthening Competitiveness Despite Global Low Growth Trend"

Petroleum product exports in the refining industry reached the highest level ever recorded for the same quarter.

The Korea Petroleum Association (KPA) announced on the 25th that domestic refiners including SK Energy, GS Caltex, S-OIL, and HD Hyundai Oilbank exported 126.9 million barrels of petroleum products in the first quarter. This represents a 7.8% increase compared to the first quarter of last year, surpassing the highest first-quarter export volume recorded in 2020 after four years.

S-Oil factory overview. [Photo by S-Oil]

Export value also rose by 4.6% year-on-year to $12.416 billion. This means that about 63.8% of the $19.5 billion spent on crude oil imports in the first quarter was recovered through exports.

Typically, first-quarter export volumes are lower compared to other quarters due to refinery maintenance occurring around March to April, resulting in lower operating rates than in the second half of the year. Despite the worsening global trade conditions caused by geopolitical tensions in the Middle East, such as the Israel-Hamas conflict this year, the refining industry appears to be overcoming these challenges by expanding exports.

By product, high value-added products such as diesel (41%), gasoline (23%), and jet fuel (17%) accounted for 81% of total exports, indicating an advancement in export product composition. Notably, Korea is the world's largest exporter of jet fuel, with about 38% of first-quarter jet fuel exports going to the United States, the largest consumer of jet fuel.

Exports by country were led by Australia (20%), Singapore (14%), Japan (10%), China (9%), and the United States (8%). In the case of Australia, the share of first-quarter exports has steadily increased since 2022, establishing it as the largest export destination for petroleum products.

A representative from the Petroleum Association stated, "Although there are concerns about global low growth trends due to recent geopolitical instability in the Middle East, such as the Iran and Israel situations, the refining industry will continue to contribute to the national economy and strengthen competitiveness in the global energy market by discovering new export markets and exporting high value-added petroleum products."