South Korea’s refiners have increased processing rates and jet fuel exports as crude imports into the Asian country recover and wide open arbitrage encourages shipments to the U.S. West Coast, analysts have told Reuters.
South Korea likely shipped the highest volumes of jet fuel in May since August last year, according to data Reuters has compiled from trade sources and energy flow tracking firms including Vortexa and Kpler.
Last month, South Korea exported between 8.67 million barrels to 9.46 million barrels of jet fuel, a major rebound from March and April, when refiners were caught off-guard by the crisis in the Middle East.
In recent weeks, crude supply in South Korea has increased, including from non-Middle Eastern sources and from releases of strategic reserves, although it’s trailing the averages from before the Iran war.
As a result of increased supply in May, South Korean refiners boosted run rates and exports of jet fuel, the most stressed barrel in the current supply crisis.
Wide premiums and wide-open arbitrage to the U.S. West Coast is incentivizing South Korea to boost jet fuel output and exports, too.
So South Korea’s kerosene shipments jumped by 36% in May from April, when exports had hit a one-year low, per estimates by Kpler. South Korea has also materially raised its share of jet fuel supply to the Asia Pacific region so far this year. South Korean kerosene has accounted for about 30% of Asia Pacific’s jet fuel imports year to date, up from a 23% share in full-year 2025.
Analysts had expected the rebound in South Korean shipments.
As early as at the beginning of May, Ivan Mathews, Head of APAC Analysis at Vortexa, said that a rebound in Northeast Asia’s jet fuel exports would be led by South Korea, which could raise refinery utilization as crude arrivals to the country are expected to recover to about 80% of pre-war levels in May.
“Coupled with favourable jet/kero cracks, margin-oriented refineries in South Korea are expected to increase exports over the coming weeks,” Mathews said in early May.
By Tsvetana Paraskova for Oilprice.com
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