Japan expects its oil imports next month to be lower than this month’s but has no plans to release additional crude from storage, the country’s economy minister said.
Oil imports next month are seen at 80% of the average monthly for 2025, Ryosei Akazawa said, as quoted by Reuters. The report noted that the August import rate had been 100% of the 2025 monthly total.
The change is prompted by the redirection of tanker traffic from the Bab el-Mandeb Strait to the Suez Canal, as Yemeni Houthis threaten attacks on vessels in the Red Sea chokepoint. A tanker takes 23 days to reach Japan via the Bab el-Mandeb strait but more than twice that, at 55 days, via the Suez Canal, Akazawa told media.
“Of the national reserves for which a release has already been decided, there remains a portion that has not been utilised due to progress in securing alternative supplies. Using that portion would ensure (September) crude oil supply equivalent to an average month last year,” the top official also said.
Japan in March announced a release of 80 million barrels of crude and fuels in response to the supply squeeze in the Middle East resulting from the U.S. and Israeli strikes on Iran at the end of February that launched the latest war in the region. The amount was equal to 50 days of demand in one of the world’s biggest energy importers.
Japan relied on Middle Eastern producers for as much as 95% of its oil imports, which made it especially vulnerable to conflict in the Persian Gulf. Since then, Japan has made an effort to diversify its sources of crude, buying from Canada, Azerbaijan, and African producer countries. This has come at a price, however, with the country’s import bill running at record highs because of energy commodities. The import bill for July hit an all-time high of $89.46 billion.
By Irina Slav for Oilprice.com
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