Reported 1 day ago
South Korea's agreement to buy $100 billion worth of American energy products in response to US tariffs faces significant hurdles. Despite gradually increasing US crude imports due to favorable trade conditions, South Korean refineries are primarily designed for heavier Middle Eastern grades, making it difficult to pivot towards lighter US oils without compromising efficiency and profitability. Additionally, long-term contracts with Middle Eastern suppliers limit the flexibility to adjust imports. As a result, while South Korea may increase US oil purchases marginally, it risks falling short of meeting Washington's expectations due to these operational and contractual constraints.
Source: YAHOO