Japan's Refiners Have Enough Crude to Last Through November, Industry Body Says

Japan's refiners have secured enough crude oil to cover operations through November, the Petroleum Association of Japan said on Friday, providing a short-term cushion amid fresh supply disruptions tied to the Middle East. The PAJ's president, Shunichi Kito, told Reuters that while some flows have been disrupted, shipments from Saudi Arabia have not stopped entirely. The comment follows attacks that led to a temporary shutdown of Saudi Arabia's East-West oil pipeline and earlier suspension of loadings at the Red Sea port of Yanbu. In response, Saudi operators have increased shuttle shipping via the Strait of Hormuz, transferring crude to buyer vessels outside the chokepoint — a process Kito described as occurring "at Saudi Arabia's risk." These measures have allowed continued, if altered, deliveries to Japan. Since the outbreak of hostilities in the region, Japan has been diversifying its supply mix to reduce reliance on Middle Eastern crude routed through the Strait of Hormuz. Historically, more than 90% of Japan's crude imports originated from the Middle East, with roughly 70% of those shipments transiting the Hormuz. To compensate for constrained Gulf deliveries, Japan has been sourcing cargoes from more distant suppliers including Canada, Azerbaijan and African producers. Policy responses have also included coordinated releases from strategic stocks: Japan joined an IEA-led effort to make available 400 million barrels of crude and oil products globally. Nonetheless, officials and industry participants warn that procuring oil from far-flung sources increases import costs, creating heavier oil bills that may weigh on industrial and economic activity.