The government has decided to lower the resource security crisis alert for crude oil from 'Alert' (the third of four levels) to 'Caution' (the second level), reflecting the ceasefire agreement between the United States and Iran and the stabilization of energy supply and demand.

The 'Caution' (second level) alert previously in effect for natural gas has been completely lifted.

Moon Shin-hak, Vice Minister of Trade, Industry and Energy, reported the energy supply and demand response plan containing these measures during a Cabinet meeting and emergency economic countermeasures meeting held at the Presidential Office today (June 30).

The resource security crisis alert system operates in four stages: 'Attention,' 'Caution,' 'Alert,' and 'Serious.'

Alerts are issued under the National Resource Security Special Act by comprehensively considering the severity of the crisis and its impact on public life and the national economy.

Following the outbreak of the war in the Middle East, the government first issued an 'Attention' alert for crude oil on March 5.

As supply conditions worsened, such as the continued blockade of the Strait of Hormuz, the alert was raised to 'Caution' on March 18 and to 'Alert' on April 2.

The 'Caution' level for natural gas had been maintained since April 2.

The government lowered the crisis alert because the energy supply and demand situation has significantly improved.

For July, more than 100 percent of the average annual crude oil supply and over 95 percent of naphtha have already been secured.

Crude oil imports for August are also rising rapidly, with more than 90 percent already secured.

"Crude oil supply through the Yanbu Port in Saudi Arabia and the Fujairah Port in the United Arab Emirates (UAE), which do not pass through the Strait of Hormuz, has increased perfectly," Vice Minister Moon explained. "In connection with the strategic petroleum reserve swap system, imports of non-Middle Eastern crude oil, centered on U.S. products, have clearly expanded."

Regarding natural gas, which had raised concerns following Qatar's declaration of force majeure on liquefied natural gas (LNG) supply in March, the government has already secured alternative volumes to be used until the end of this year through preemptive measures.

As the supply and demand of crude oil and LNG have stabilized and tensions in the Middle East have eased, the government plans to gradually normalize the emergency measures that have been in place, taking into account public inconvenience and economic ripple effects.

Accordingly, support for the price difference in diversified crude oil freight rates, strategic petroleum reserve swaps, and support for the price difference in alternative naphtha imports will operate until today and then be terminated.

However, considering the possibility of intermittent supply chain bottlenecks for certain items, the government plans to continue measures for naphtha and petrochemical product supply and demand even after July.

Meanwhile, demand management measures for the public sector will be completely lifted.

Initially, the government planned to switch vehicle restrictions for public institutions from the current odd-even day system to a five-day rotation system and lift the five-day rotation system for public parking lots.

However, following President Lee Jae-myung's criticism that the measures were "ineffective," it was decided to completely lift the vehicle regulations for the public sector.

(Photo: Provided by Korea National Oil Corporation, Yonhap News)