The government has dismissed rumors of a "November crisis," stating that more than 70% of the crude oil supply for November has already been secured.

During a briefing today (18th), Yang Gi-wook, head of the Industrial Supply Chain Security Policy Directorate at the Ministry of Trade, Industry and Energy, stated, "We are currently securing about 90% of the crude oil import volume for September and October compared to the previous year's average, and we have also secured over 70% of the November volume, with the figure steadily increasing."

Yang added, "Since there is still time until the import delivery dates, the procurement rate will rise further," and noted, "Compared to the most difficult crisis phase last April, there are no major concerns regarding domestic supply and demand through December."

Yang also explained that naphtha imports are being secured at over 100% for September and at levels similar to the previous year for October.

Rumors of a "November crisis" have been rising within the domestic refining and energy sectors as the conflict in the Middle East reintensifies and disruptions hit crude exports from Saudi Arabia, the world's largest crude exporter.

Following a significant reduction in vessel operations through the Strait of Hormuz due to the U.S.-Iran war, Saudi Arabia has been sending crude from its eastern oil fields through the 1,200-kilometer East-West Pipeline to the Red Sea port of Yanbu for export.

However, drone attacks destroyed the East-West Pipeline, prompting Saudi Arabia to halt pipeline operations on the 11th.

The Wall Street Journal (WSJ) reported that it could take 6 to 8 weeks to fully restore the East-West Pipeline.

There are projections that if restoration is delayed more than expected, instability in crude oil supply and demand could persist from late October through November.

In response, Yang explained that while it is true that uncertainties have arisen in importing shipments from high-risk areas like the Yanbu port due to the attack on Saudi Arabia's East-West Pipeline, these are being offset as volumes are routed through alternative paths.

He emphasized, "The domestic refining industry is responding by utilizing alternative shipping routes and securing alternative volumes outside the Middle East," adding, "The government is preparing to ensure there are no disruptions in supply and demand by utilizing the strategic petroleum reserve (SPR) swap system."

The strategic petroleum reserve swap is a system where, upon a refinery proving it has secured crude oil overseas, the government first lends from its strategic reserves and gets them returned later when the alternative volume arrives in the country.

The government supplied approximately 5.8 million barrels to the market through the strategic petroleum reserve swap, which was restarted on August 24 last month.

It also plans to identify and support additional swap demand totaling 9.6 million barrels by mid-November.

Currently, the combined strategic petroleum reserves held by the government and the private sector are maintaining a level of 190 million barrels.