South Korea\u2019s Lee warns Iran war to keep oil price high, orders quick\naid rollout<\/p>\n
The government should treat prolonged disruption in global energy and\nraw materials markets as a given and reinforce its emergency response\nsystem, said President Lee Jae Myung in a Cabinet meeting.<\/p>\n
SEOUL: South Korean President Lee Jae Myung said rising tensions\naround the Strait of Hormuz made it hard to be optimistic about the\nfallout from the Iran war, warning that high oil prices and supply-chain\nstrains were likely to persist for some time.<\/p>\n
Lee told a Cabinet meeting on Tuesday (Apr 14) the government should\ntreat prolonged disruption in global energy and raw materials markets as\na given and reinforce its emergency response system.<\/p>\n
\u201cFor the time being, difficulties in global energy and raw materials\nsupply chains and high oil prices will continue,\u201d Lee said.<\/p>\n
\u201cI ask that we pursue the development of alternative supply chains,\nmedium- to long-term industrial restructuring, and the transition to a\npost-plastic economy as top-priority national strategic projects.\u201d<\/p>\n
Lee also urged ministries to move quickly to deploy a supplementary\nbudget passed in response to the war.<\/p>\n
At the meeting, ministers outlined steps to contain the economic\nshock from the conflict, including support for crude imports, controls\nagainst hoarding of petrochemical feedstocks and medical supplies, and\nexpanded financial assistance for affected companies.<\/p>\n
SECURING NEW ENERGY SUPPLIES<\/p>\n
Industry Minister Kim Jung-kwan said disruptions to shipping through\nthe Strait of Hormuz were still affecting supplies and that even if the\npassage normalises, it could take around 20 days for Middle Eastern\ncargoes to reach South Korea.<\/p>\n
The government is prioritising support for the passage of seven South\nKorea-bound oil tankers stuck in the Gulf area, a document shown during\nthe cabinet meeting said.<\/p>\n
Foreign Minister Cho Hyun told the meeting that the ministry had sent\nofficials to the Congo, Algeria and Libya in a bid to secure energy\nsupplies, in addition to presidential Chief of Staff Kang Hoon-sik\ntravelling to countries such as Kazakhstan since last week.<\/p>\n
\u201cI also urge the parties to this war to take courageous steps toward\nthe peace the world so desperately wants, based on the principles of\nprotecting universal human rights and the lessons of history,\u201d Lee\nsaid.<\/p>\n
South Korea\u2019s energy ministry said on Tuesday it would begin rolling\nout a revised seasonal and time-of-use electricity pricing system to\nshift power demand away from evening peak hours toward midday, when\nsolar generation is higher.<\/p>\n
The new rates take effect for large industrial users from Apr 16,\nwhile weekend discounts for electric-vehicle charging will begin on Apr\n18.<\/p>\n
Meanwhile, Middle Eastern oil producers are in contact with South\nKorea about using the country\u2019s petroleum storage facilities as\ndisruptions at the Strait of Hormuz continue, a South Korean industry\nministry official said on Tuesday, signalling growing interest in\noffshore crude storage hubs.<\/p>\n
Yang Ki-wook, a senior official at the industry ministry, told a\nbriefing that Middle Eastern countries were showing increased interest\nin storing oil outside the strait because a prolonged disruption in\nlogistics would hit their economies and pre-positioning crude could\nreduce export risks.<\/p>\n
Yang said that in addition to Abu Dhabi National Oil Company, which\nalready has a joint stockpiling agreement with South Korea, other Middle\nEastern producers were also in contact, though he did not identify\nthem.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/south-koreas-lee-warns-iran-war-to-keep-oil-price-high-orders-quick-aid-rollout-1776160274", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }