South Korea, the world’s fifth-largest buyer of crude cargoes, extended a law that provides freight-cost rebates to companies importing non-Middle East oil, according to the International Energy Agency.
The Asian country will rebate 90 percent of the freight cost to companies that purchase 2 million barrels or more of non-Middle East oil in a year, the Paris-based adviser to South Korea and 27 other energy-consuming nations said in a report today. The rule previously applied when annual imports reached 7 million barrels, it said.
The law, designed to diversify where the country gets its oil from, took effect on June 1 and “supported” the price of North Sea crudes since then, the IEA said. South Korea will import 2.6 million barrels a day of crude by sea this year, according to data from Clarkson Plc, the world’s largest shipbroker.