A North Korea Disaster Could Threaten Extra Than A Third Of The Oil Transferring On The Oceans

More than half of China’s oil production will be at risk if tensions between North Korea and its North Asia neighbors spirals into conflict, energy consultancy Wood Mackenzie warned.
For China, its domestic oil production would provide a buffer, but the proximity of key producing basins to the North Korean border leaves the country vulnerable to disruption.
Military action could halt the flow of crude oil imports to South Korea, Japan and China, which together account for 34 percent of seaborne oil trade globally, the consultants said in a Wednesday report.
South Korea and Japan could take similar action and both countries have emergency reserves to cover 90 days’ worth of demand.
Japan may accelerate the re-commissioning of nuclear power generators to compensate for any squeeze on imported oil and gas in the event of a conflict.

Read more on: http://www.cnbc.com