Japan must explore ways to reduce its dependence on the Middle East for crude oil, a lesson it has learnt from the current crude oil supply crisis, president of the Petroleum Association of Japan (PAJ) said on 20 May.
More than 90pc of Japan's crude imports originate from the Middle East. Supplies from the Middle East, such as Saudi Arabia and the UAE, have continued to reach Japan via routes outside of the strait of Hormuz, despite the disruptions.
But the country must explore ways towards lowering that dependence and consider how much to lower that reliance, Shunichi Kito, president of the PAJ and chairperson of Japanese refiner Idemitsu said.
Japanese refiners have been expanding supply sources of crude given the disruptions to supplies transiting through the strait, with the US becoming one of Japan's main sources of crude.
Sourcing crude from Latin America including Mexico, Ecuador and Venezuela is a possibility, Kito said, pointing to Alaskan crude and sanctions-exempt Russian crude as well. Japan would work to diversify its supply sources by procuring crude oil from these regions, he added.
But Japan's refineries are configured to process Middle Eastern crude. Refiners are currently trying to minimise the impact from the diversification of sources by analysing the properties of all alternative crude sources and blending them accordingly.
"Revising and changing the supply structure to some extent will contribute to ensuring stable energy supply. Over the medium- to long- term, modifications to facilities may also be necessary," Kito said. "If a situation arises where capital investment is required to implement alternative measures for stable energy supply, we will also need to respond accordingly."
Middle Eastern crude made up 94pc of Japan's crude oil imports in 2025, data from Japan's trade and industry ministry Meti show. Japan has secured around 60pc and over 70pc of its crude requirements for May and June, respectively, through alternative procurement, Japanese prime minister Sanae Takaichi said earlier in May. This includes supplies from the Middle East transiting through alternative routes other than the strait. Crude oil from the Middle East and the US will account for most of such alternative supplies in both months.
