S. Korean President Assures Public Amid Oil Price Surge
President Lee Jae Myung says government is taking all necessary measures to stabilize oil prices following Middle East tensions.
Quick Look
South Korean President Lee Jae Myung reassured citizens that the government is taking measures to stabilize oil prices amid a global surge driven by Middle East tensions and supply disruptions.
AI-generated summary
Why It Matters
Global crude prices surged above US$100 per barrel due to disruptions in the Red Sea, the Strait of Hormuz, and an aerial attack on a Saudi Arabian pipeline.
SEOUL, Sept. 12 (Yonhap) -- President Lee Jae Myung reassured South Koreans on Saturday that the government is taking all necessary measures to stabilize oil prices amid a surge in global crude prices caused by escalating tensions in the Middle East.
In a post on the social media platform X, Lee highlighted the government's efforts to diversify crude oil imports to reduce the country's reliance on the Middle East, with the region's share of imports falling from about 70 percent to 50 percent.
He also cited measures including oil price caps, export controls and a strategic oil reserve swap system.
Lee reaffirmed the government's commitment to cracking down on oil hoarding and price collusion, while compensating local refiners for losses stemming from government price stabilization measures.
"You don't have to worry about oil prices at all," Lee wrote.
The remarks came as disruptions in the Red Sea and the Strait of Hormuz fueled concerns over global energy supplies, pushing oil prices back above US$100 per barrel.
Adding to the supply concerns, Saudi Arabia shut down its East-West pipeline after the key oil conduit came under aerial attack amid the widening conflict, raising fears of further increases in energy prices.
Open Questions
- How long will the Middle East supply disruptions persist?
- What specific export controls will the South Korean government implement?
