Japan says August crude supplies fully covered despite Middle East disruption
XLE•Japan says August crude supplies are secured
TOKYO, July 24 (Reuters) - Japan has secured alternative crude supplies for August equivalent to 100% of last year's average monthly consumption, Trade Minister Ryosei Akazawa said on Friday.
- "We are on track to secure crude supplies for August equivalent to about 100% of last year's average monthly consumption," Akazawa told reporters. Japan secured a similarly level of supplies in July.
- He said Japan was sourcing crude from Asia-Pacific, Latin America, Central Asia and Africa, in addition to the Middle East and the United States, as the government and industry work together to secure alternative supplies.
- Asked about threats from Yemen's Iran-backed Houthi, Akazawa declined to comment on their potential impact but said Japan was monitoring developments in the Middle East with grave concern.
- The Iran-backed Houthis said on Thursday they had attacked two Saudi Arabian oil tankers in the Red Sea, raising concerns over energy shipments through the Bab el-Mandeb strait, a key chokepoint after the Strait of Hormuz.
Reserves remain ample and no fresh releases are planned
- "We'll do our utmost to ensure a stable energy supply while minimising drawdowns of national oil reserves," he said.
- The ministry said no additional oil stockpile releases are planned in July, following no fresh releases in May and June. As of July 21, Japan held oil reserves equivalent to 203 days of consumption.
- The ministry also launched a working group to strengthen energy supply resilience after the Iran crisis exposed vulnerabilities, including disruptions to shipping through the Strait of Hormuz. It will examine measures such as diversifying crude sources, adapting refineries to process a wider range of feedstocks and reviewing the national oil reserve system, the ministry said.
