Japan is speeding up purchases of crude oil from outside the Middle East after shipments through the Strait of Hormuz almost stopped. The country is now looking for supplies from the United States, Azerbaijan, South Sudan, to Sakhalin in Russia's Far East.
Kyodo News, citing a number of sources reported on Thursday, June 11, reported that Japan estimated that crude oil imports in July could return to the same level as last year. The projection comes amid a war that has disrupted the world's main energy routes.
Japan has relied on the Middle East for more than 90 percent of its crude oil imports. Most of the supplies pass through the Strait of Hormuz. This line is usually used by about 20 percent of the world's oil and liquefied natural gas.
Disruption in the Strait of Hormuz forced Tokyo to find new suppliers. The Japanese government previously estimated that crude oil imports in June were only about 80 percent compared to the same period last year.
Prime Minister Sanae Takaichi is expected to announce July's import projections at a ministerial-level meeting on Thursday. The meeting discussed Japan's response to developments in the Middle East.
Pressure on Japan has increased after the United States and Israel attacked Iran in late February. It is not clear when the war will end. This uncertainty makes Japan, a country with few natural resources, have to broaden its oil supply sources.
Japan received its first crude oil shipment from the United States in April, after the situation in the Middle East worsened. Since May, Japan has also secured supplies from Azerbaijan, South Sudan, and Sakhalin.
According to a source quoted by Kyodo, the July projection reflects Japan's progress in securing alternative supplies.
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