Reuters is reporting that US exports of oil and gas to South Korea will follow the same rapid trend of 2018. These exports will reportedly narrow South Korea’s trade surplus with the US, in addition to strengthening the ties between the two countries.
Projections for January and February 2019 suggest that South Korea will import a minimum of 18 million barrels of crude oil and 900 000 t of LNG from the US. This will mark a four-fold increase in oil, and a slight decline in LNG imports from the same period in 2018.
This activity has been made possible by increased oil and gas output in the US, which has contributed to favourable market conditions. Furthermore, President Donald Trump has continued to advocate for a policy to reduce trade deficits, pushing for the US to sell more to its major trading partners than it buys. Oil and LNG have been key commodities in this net export strategy.
In 2018, the US exported record quantities of LNG and crude oil to South Korea, filling a void left by tightening supplies from the Middle East region, as OPEC-led output cuts and the re-imposition of US sanctions on Iran came into effect.
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/30012019/south-korea-maintaining-strong-energy-trade-with-us/