S. Korea to lower energy security alert on crude by notch amid eased uncertainties
Seoul, June 30
The government plans to lower the resource security crisis warning for crude oil by a notch to Level 2, the vice industry minister said on Tuesday, following the stabilisation of global oil prices amid progress in peace talks between the United States and Iran.
Vice Industry Minister Moon Shin-hak made the remark during a Cabinet meeting held at the presidential office, adding the alert for natural gas will be fully lifted as well, reports Yonhap news agency.
South Korea operates a four-tier national resource security crisis warning system based on the severity of supply disruptions and their impact on the national economy.
The government first issued the lowest alert for crude oil in early March, which was raised to Level 2 later that month and eventually to Level 3 in April. South Korea has also maintained a Level 2 alert for natural gas since April.
Moon said more crude oil is being imported via routes that bypass the Strait of Hormuz, with the country also securing imports from regions beyond the Middle East, including the U.S.
Consequently, the government will also fully lift the vehicle rotation system, scrapping its original plan to ease the odd-even rule to a five-day rotation.
Meanwhile, South Korean stocks traded slightly higher late on Tuesday morning, tracking overnight gains on Wall Street as easing tensions in the Middle East boosted investor appetite.
The benchmark Korea Composite Stock Price Index (KOSPI) gained 8.97 points, or 0.11 percent, to 8,403.62 as of 11:20 a.m., after opening 0.68 percent higher.
Investor sentiment improved after the United States and Iran were set to resume talks in Qatar aimed at easing tensions in the Strait of Hormuz, alleviating concerns over a prolonged disruption to global oil supplies.
Overnight, Wall Street rebounded sharply as investors returned to tech stocks.
The Dow Jones Industrial Average gained 0.59 percent to close at a record high, while the Nasdaq composite jumped 2.07 percent and the S&P 500 advanced 1.18 percent.
Crude prices rose modestly as investors monitored implementation of the U.S.-Iran peace framework.
— IANS
Reader Comments
Meanwhile, we still have the odd-even scheme in some cities and petrol prices keep fluctuating wildly. Korea's system seems more proactive—raising and lowering alerts based on real data. We could learn a thing or two about crisis management.
It's impressive how Korea is balancing diplomacy with the US-Iran talks while securing alternate routes. The stock market gains show confidence is returning. Hope this stability lasts, not just for Korea but for global supply chains.
As an Indian, I feel this is a reminder that countries heavily reliant on imports need better energy independence. South Korea is doing what it can, but we need to push renewable energy harder. The future is solar and wind especially for a sunny country like India. ☀️
Good news that tensions are easing in the Middle East. But I hope the government doesn't become complacent—we saw last year how quickly oil prices shot up. A little caution goes a long way. Better to keep some reserves ready.
India's strategic crude storage is decent, but we need more. Korea's system of tiered alerts is very structured—wish our ministries would adopt something similar. Every time there's a crisis, we're caught off guard.
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