Japan recorded its lowest volume of crude oil imports from the Middle East in April since official records began in 1979. The drop was marked by disruptions caused by the conflict between Iran and Israel and the de facto closure of the Strait of Hormuz, one of the world’s most important energy routes.
According to preliminary data from the Japanese Ministry of Finance, crude oil imports from the Middle East fell 67.2% year-on-year to 3.843 billion kiloliters. This reduction reflects the significant logistical challenges facing the region and Japan’s energy vulnerability due to maritime restrictions in the Persian Gulf.
The closure of the Strait of Hormuz affects crude oil imports
The Strait of Hormuz concentrates a large part of the world’s trade in oil and liquefied natural gas; before the crisis, more than 90% of the crude oil imported by Japan passed through this maritime route.
Similarly, Japanese imports of liquefied natural gas from the Middle East fell by 76.1% in April. The disruption particularly affected shipments from Qatar and the United Arab Emirates, countries that account for a significant portion of the global LNG supply.
The reduction in energy flow forced Japan to accelerate its search for alternative suppliers outside the Middle East. Among these, the United States and Latin American countries stand out, and their shipments began to partially offset the drop in regional supply.
Japan releases strategic reserves to support refineries
Faced with pressure on supply, the Japanese government activated part of its strategic oil reserves in coordination with measures promoted by the International Energy Agency (IEA).
The international program envisions the release of up to 400 million barrels of crude oil and refined products to stabilize the global energy market and contain the impact of the crisis on importing countries.
Thanks to these measures, Japanese refineries began to gradually resume operations during May. Data from the Japan Petroleum Association shows that the average utilization rate again exceeded 70% for the first time since March.
The arrival of crude oil shipments from outside the Middle East also helped to ease pressure on Japan’s energy system after several weeks of shortages and logistical delays.
The conflict raises concerns about energy security
The situation brought to the forefront once again Japan’s high dependence on imported oil and the strategic importance of the Strait of Hormuz for Asian economies.
Energy market analysts warn that a prolonged conflict could further increase crude oil costs, affect industrial production, and generate new inflationary pressures in Japan and other energy-importing economies.
Meanwhile, the country is maintaining diplomatic and commercial efforts to secure alternative supply routes that will allow it to stabilize supplies over the coming months.
Source and photo: Oilprice.com