Middle East Situation Impacts Crude Oil Supply; Japan's April Imports Hit Record Low with 65% Drop

Central News Agency (Tokyo, 29th) The Agency for Natural Resources and Energy released its "Petroleum Statistics Flash Report" today. Japan's crude oil imports in April fell to 4.07 million kiloliters (KL), a 65% decrease compared to the same period last year, marking the lowest record since statistics began in 1989. The main reason is the reduction in supply due to the worsening situation in the Middle East. Japan is currently accelerating alternative procurement from the U.S., and import volumes are expected to gradually recover in May.

According to NHK, statistics show that Japan imported 4.07 million KL of crude oil in April, a 65% drop from the previous year. Imports from the Middle East were 3.56 million KL, a 68% decrease year-on-year.

By country, crude oil from Saudi Arabia was 1.82 million KL, down 57% year-on-year; the United Arab Emirates was 1.64 million KL, down 69%. Additionally, crude oil imported from the U.S. was 310,000 KL, a 32% decrease year-on-year.

The Agency for Natural Resources and Energy pointed out that after the Middle East situation worsened, Japan turned to the U.S. for alternative crude oil. Related tankers arrived in Japan for the first time in late April. It is estimated that imports from the U.S. in May will increase to about four times that of the same period last year, driving an overall recovery in import volumes.

In addition to crude oil, the import volume of naphtha, the main raw material for petrochemical products, also fell to 1.1 million KL in April, a 43% decrease year-on-year.

Seiki Hosokawa, an official at the Agency for Natural Resources and Energy, stated that April was still in the coordination stage for alternative procurement sources, so domestic demand was mainly met by releasing national petroleum reserves. As alternative procurement is gradually put in place in May, import volumes are expected to recover.