Idemitsu Finds Suez Route for Saudi Crude Amid Strait Closure

Idemitsu Kosan, Japan's second-largest oil refiner, has found an alternative route to source Saudi crude from Yanbu, bypassing the closed Bab el-Mandeb Strait. President Noriaki Sakai told Reuters that while shipping times have increased and costs have risen, there is no near-term risk to stable supplies.

The company plans to continue procuring Saudi crude via the Suez route, which now takes 50-60 days instead of the usual 20 days. To mitigate this, Idemitsu has secured additional crude cargoes for loading from Egypt's Mediterranean port of Sidi Kerir since July.

Sakai emphasized that maintaining access to Middle Eastern oil is a priority due to long-standing trust between Japan and Middle Eastern producers and the crude's suitability for Japanese refineries. However, he acknowledged public concerns about Japan's reliance on Middle Eastern crude and suggested that the government and industry discuss finding an appropriate balance.