Shunichi Kito, the head of the Japan Petroleum Association (PAJ) and also the president of the Idemitsu Kosan oil refinery, announced at a press conference on September 18 that Japan has secured sufficient crude oil supply for its domestic market until the end of November. However, Kito warned that the supply situation from December is still uncertain due to escalating tensions in the Middle East.
Crude Oil Supply and Upcoming Challenges
Kito stated at the conference, "The crude oil supply until November has been planned in advance." However, he pointed to the limitations of visibility regarding supply from December and added that the situation in the Middle East is deteriorating.
Concerns about crude oil supply have increased following the attack on the East-West pipeline in Saudi Arabia on September 10, which led to a temporary suspension of its operations. This pipeline transports oil from Saudi Arabia's oil-producing regions to the Red Sea coast and has been used as an alternative route after the Strait of Hormuz was closed by Iran.
Japan's Oil Imports and Dependence on the Middle East
Japan imports over 90 percent of its crude oil from countries surrounding the Strait of Hormuz. Given the rising tensions in this region, including the claim of Houthi control over the Bab al-Mandab Strait, concerns about oil supply have increased.
Kito also stated that information regarding the extent of damage to the East-West pipeline has not yet been gathered and its impact on crude oil supply is unclear. He said, "We hope that this pipeline returns to normal as soon as possible," but did not provide further details on the potential impact on Japan's crude oil supply.
