Crude oil import prices surge 25% on Middle East supply fears

Naphtha imports fall as Yeosu industrial complex slump deepens

Rising oil prices driven by geopolitical instability in the Middle East have pushed up crude oil import prices, while imports of naphtha — a key raw material for the petrochemical industry — have fallen sharply, data showed.

The Yeosu Customs Office released raw material import figures through the end of August, showing crude oil imports through Yeosu port totaled 178.22 million barrels from January through August, up 2.4 percent from last year.

The average per-barrel import price jumped 25 percent, from $74.1 to $92.5, as Middle East supply concerns drove up costs.

The increase is adding upward pressure on domestic prices, including gasoline. If instability from the war in the Middle East and other regional tensions persists, international oil prices are expected to keep rising, pushing crude import costs even higher.

To reduce uncertainty from regional instability, importers have been diversifying their supply sources — lowering dependence on the Middle East while expanding purchases from North America.

Crude imports from the Middle East fell 2.7 percent from last year, with the region's share of total imports dropping to 70 percent from 74 percent. North American crude imports, meanwhile, rose 19 percent, lifting that region's share to 27 percent from 23 percent.

Naphtha imports, by contrast, plunged 34 percent to 6.24 million tons from 9.46 million tons the previous year. The decline reflects a broader restructuring of the petrochemical sector, driven by a global supply glut, deteriorating profitability as per-ton import prices climbed from $619 to $791, and the shutdown of naphtha cracking facilities within the Yeosu industrial complex.