Japan Secures Crude Oil Through November Amid Ongoing Supply Disruptions
Japan's refineries have secured enough crude oil to last through November amid ongoing supply chain disruptions from the Middle East, according to Shunichi Kito, president of the Petroleum Association of Japan (PAJ).
The shutdown of Saudi Arabia's East-West oil pipeline following recent attacks has added uncertainty to oil cargo movements from the region.
However, shipments from Saudi Arabia to Japan have not entirely stopped, as some crude oil is being shipped through the Strait of Hormuz at Saudi Arabia's risk before being transferred outside the Gulf.
In an effort to offset the supply loss due to the Middle East conflict, Japan has turned to alternative sources such as Canada, Azerbaijan, and Africa. However, this comes at a high economic cost, with soaring oil import bills weighing on industrial and economic activity.