Japan's Oil Import Bill Soars 59% Amid Rising Crude Prices

Japan's oil import bill skyrocketed by 59% last month due to rising crude prices, exacerbating the country's trade deficit for the fourth consecutive month.

The surge in costs was largely driven by a 3.6% increase in oil volumes, with the total import bill reaching a new high of 28% above the previous year's level.

According to Daiwa Institute of Research analyst Koki Akimoto, 'oil import costs could increase further from September onward, leading to a further deterioration in Japan's terms of trade, given the roughly two-month lag before higher crude prices are reflected in imports arriving at Japanese ports.'

The country's dependence on energy imports remains high, with 90% of its crude oil coming from the Middle East. Despite efforts to diversify its suppliers, rising war premiums and the impact of global conflicts have continued to drive up costs.