Japan's crude imports plunge 50% since Iran war, exposing Mideast reliance
Japan's crude-oil imports fell 50 percent year on year in April, according to Nikkei Asia. The Iran-war-related disruption in the Strait of Hormuz has exposed the country's heavy reliance on Middle East supply.
According to Nikkei Asia, Japan's crude-oil imports fell 50 percent year on year in April, one of the sharpest monthly contractions on record. Iran-war-related disruption in the Strait of Hormuz has slowed flows from Saudi Arabia and the United Arab Emirates, and Japanese refiners have moved into tight demand management. METI data show that strategic crude reserves stood at about 184 days of consumption at the end of March.
Mitsubishi UFJ senior analyst Kosuke Nishio told Nikkei that Japan's 'structural over-reliance on Middle East sources is resurfacing.' Cosmo Energy and Idemitsu Kosan warned that refining margins will tighten in the short term, while ENEOS shares traded mildly lower in Tokyo. The government said talks for additional supply with the United States and Australia have been accelerated.
METI's additional strategic-reserve plan, due by mid-June, will focus on alternative supply channels and an expansion of storage agreements with Singapore. This article is not investment advice.
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