South Korean Crude Imports Rose 8.6% YoY in January

South Korean crude oil imports rose by 8.6% on the year to 88.63mn barrels, or 2.86mbpd, in January, Korea Customs Service data showed, supported by expected better refinery margins according to market sources.

• This marks the fifth consecutive month of a year-on-year increase.
• Importers ramped up January crude buying as refiners increase run rates on expected improved margins driven by India’s economic growth and rising tourism across Asia according to analysts at Meritz Securities and Industrial bank of Korea.
• Regional refining margins are forecast to stay at a relatively healthy level for 2024, supported by steady transport fuel demand growth and low inventory levels, according to an S-Oil Corp. official.
• South Korean refiners processed 90.42 million barrels, or 2.92 million b/d, in December last year, up 3.6% from a year earlier, which marks the third consecutive month of year-on-year increase, according to state-run Korea National Oil Corp., or KNOC.
• "China's economic stimulus measures, coupled with firmer travel demand during the Lunar New Year holiday period, are anticipated to push up [regional] refining margins, particularly for jet fuel and diesel," an official at the country's top refinery SK Innovation said.