South Korea raise the budget to buy oil reserves in the light of the low prices 1/26
South Korea raise the budget to buy oil reserves in the light of the low prices
1/26/2016 0 Comments
South Korea decided to raise allocated for the purchase of crude oil and oil products to fill the strategic reserve current year's budget.
She said the Department of Energy, said the lifting of the reserve will be increased by 64 percent from last year to take advantage of low oil prices.
The ministry said in a statement that the fifth-largest importer of crude in the world has allocated 90 billion won (75 million dollars) for the purchase of crude oil and petroleum products to fill the strategic reserves, compared with 54.9 billion won in 2015.
He said the ministry statement, "we have allocated the maximum amount possible in the budget to take advantage of buying opportunities in light of the continued low prices of 2015."
Ministry official said that according to the budget this year, the South Korean government intends to buy 1.3 Mellon barrels of crude and 120 thousand barrels of gasoline to fill the strategic reserves, although the final amount may vary depending on the price.
The total storage capacity of government in South Korea is currently 146 million barrels.
The ministry statement said that the government currently maintains a strategic reserve of oil and oil products of 92.6 million barrels and aims to increase it to 107 million barrels by 2025.