Japan secures crude oil supplies through November amid Middle East tensions

Japanese oil refineries have secured enough crude oil to meet demand through the end of November, according to Shunichi Kito, Chairman of the Japan Petroleum Association (PAJ). This announcement comes amid heightened uncertainty regarding Middle Eastern oil supplies following recent disruptions.

Recent instability in the Middle East, including the temporary closure of the East-West Pipeline in Saudi Arabia and halted operations at the Yanbu port on the Red Sea, has raised global supply concerns. However, Kito noted that shipments from Saudi Arabia to Japan have not been completely halted. Some crude is being transported via shuttle tankers through the Strait of Hormuz, with Saudi Arabia assuming risk until the oil is transferred to buyers outside the Gulf.

Japan remains heavily dependent on Middle Eastern crude, with over 90% of its imports originating from the region and approximately 70% of those passing through the Strait of Hormuz. To mitigate risks, Japan has participated in global efforts coordinated by the International Energy Agency (IEA) to release crude oil from strategic reserves.