Key facts
- Japan anticipates reduced oil imports for the upcoming month.
- The nation will not tap into its strategic oil reserves for additional supply.
- A significant portion of Japan's oil imports originates from the Middle East.
- The country has been diversifying its crude oil sources.
- The redirection of tanker traffic via the Suez Canal increases transit time.
Japan's economy minister, Ryosei Akazawa, announced that the country does not plan to release additional crude oil from its strategic reserves, despite anticipating lower oil imports next month. Imports are expected to be at 80% of the average monthly rate for 2025, down from 100% in August.
The decision comes as tanker traffic is being rerouted from the Bab el-Mandeb Strait to the Suez Canal due to threats of attacks by Yemeni Houthis. This rerouting significantly increases transit times, with a journey to Japan taking 55 days via the Suez Canal compared to 23 days through the Bab el-Mandeb.
Akazawa stated that a portion of the previously decided release of 80 million barrels of crude and fuels, announced in March, remains unutilized due to the securing of alternative supplies. This remaining portion is sufficient to cover September's crude oil supply equivalent to an average month last year.
Japan, which historically relied on the Middle East for up to 95% of its oil imports, has been working to diversify its sources, including purchases from Canada, Azerbaijan, and African nations. However, this diversification has contributed to record-high import bills, reaching $89.46 billion in July.