Seoul revives long-haul crude freight subsidy
South Korea is reviving subsidies for long-haul crude imports from outside the Middle East, with the government again covering the full additional freight cost on non-Middle Eastern crude. The earlier programme produced a dramatic shift in sourcing, including large year-on-year increases in US, Canadian, Ecuadorian and African crude imports. The government also restarted its strategic crude stock swap scheme on August 24 and may extend it beyond October.
Why it matters: This affects the energy security theme by showing how state subsidies are being used to diversify crude supply sources and reduce dependence on Middle Eastern oil.