Idemitsu Diversifies Oil Sourcing Amid Yemen Conflict

Idemitsu Kosan, Japan's second-largest oil refiner, has started sourcing Saudi crude from Yanbu via the Suez route and the Cape of Good Hope. According to President Noriaki Sakai, this new route will not pose a significant disruption to crude procurement.

The change comes due to attacks by Yemen's Iran-aligned Houthis that have made the Bab el-Mandeb Strait impassable for most Saudi oil shipments. This has forced vessels onto a longer route that takes 50-60 days, compared to the usual 20-day journey.

Idemitsu plans to continue procuring Saudi crude via the Suez route and has been offered additional crude cargoes by Saudi Aramco since July. These cargoes are loaded from Yanbu in Saudi Arabia, then transported through the Suez-Mediterranean Pipeline to Egypt's Mediterranean port of Sidi Kerir for export.

Japan sourced 94% of its crude imports from the Middle East in 2025, with 93% passing through the Strait of Hormuz. However, President Sakai emphasized the importance of maintaining access to Middle Eastern oil, citing long-standing trust between Japan and Middle Eastern producers and the suitability of the crude for Japanese refineries.