Seoul, March 31 -- South Korea has launched its first-ever oil swap programme, allowing refiners to borrow crude from government reserves and return it later, as part of efforts to cushion supply shocks stemming from escalating tensions in West Asia, reports Korea Herald.

Under the scheme, the government will lend crude oil from its strategic reserves to domestic refiners, who will repay the volumes with alternative crude at a later date. The move is aimed at ensuring stable supply and easing short-term disruptions in the energy market.

The scheme, announced Tuesday by the Ministry of Trade, Industry and Resources, aims to bridge short-term supply gaps while accelerating efforts to diversify crude imports away from the West Asia.

"This...