South Korea Oil Imports Fall as Recession Concern Curbs Demand

By Shinhye Kang

Nov. 3 (Bloomberg) -- South Korea imported 1.4 percent less crude oil in October as the global credit crisis sent shockwaves through Asia's fourth-biggest economy and a weakened currency inflated the cost of buying fuels.

Imports fell to 70.4 million barrels last month from 71.4 million a year earlier, the Ministry of Knowledge Economy said in an e-mailed statement today. The country's crude oil import bill rose 26.3 percent to $6.9 billion.

South Korea bought less crude even as benchmark prices extended their decline, after its economy grew at the slowest pace in four years last quarter, sparking concern the nation is headed for a recession. The won dropped 36 percent against the dollar this year, making imports more costly for refiners.

Oil prices in New York dropped 54 percent since reaching a record $147.27 a barrel on July 11, on concern moderating economic growth may cut global fuel demand. While prices are still 28 percent higher than a year earlier, the cost of importing a barrel of crude declined 15 percent in October from September, the ministry said.

To contact the reporter on this story: Shinhye Kang in Seoul at skang24@bloomberg.net