Japan Secures Oil Supply Until March 2028 Amid Hormuz Crisis, June 12

Japan has secured stable crude oil supplies through March 2028 by diversifying imports and releasing strategic reserves, Prime Minister Sanae Takaichi said on June 11. The country previously depended on the Middle East for 94 percent of crude imports, but the Iran war has effectively closed the Strait of Hormuz. Japan now sources alternative supplies from the United States, Mexico, Azerbaijan, South Sudan, and Russia’s Sakhalin region to maintain energy security.

July Imports to Fully Bypass Hormuz

Japan’s crude oil imports in July will be fully sourced from areas outside the Strait of Hormuz for the first time, Takaichi said. US crude shipments are expected to exceed 10 times the previous year’s monthly average, while Japan will receive its first oil cargo from Mexico in July. The government secured alternative supplies equal to 100 percent of the previous year’s average monthly consumption volume for July and 80 percent for June.

Strategic Reserves Provide Cushion

Japan has been drawing down oil stockpiles since March 16 to address supply disruptions. As of June 8, Japan held oil stockpiles equivalent to 201 days of consumption, comprising 107 days in government reserves, 92 days in private stockpiles, and three days in joint reserves with oil-producing nations. Takaichi said the government has no plans to release additional oil reserves this month. Even if alternative procurement falls to 75 percent in August and beyond, Japan can maintain stable supplies by using reserves.

Lubricant Supply System Launched

The government developed a new system allowing lubricants to be sold directly from major producers, addressing concerns about supply disruptions for engine oil and cutting oil. This move responds to the complexity of lubricant supply chains, which had become vulnerable during the Strait of Hormuz closure. The system aims to ensure continuity for thousands of industrial applications that depend on these products.

G7 Push for Energy Security

Takaichi will visit Europe from June 13, holding talks with British and Italian leaders before attending a G7 summit in France. She plans to urge the G7 to ensure free navigation through key sea lanes like the Strait of Hormuz, support strategic oil stockpiles in Asia through cooperation with the International Energy Agency, and deepen cooperation between oil-producing and consuming countries. Analysts at Japan’s oil supply strategy reflect broader efforts to stabilize energy markets. The diversification of crude sources signals a structural shift in Asian energy procurement.

Final Thoughts

Japan’s extended supply security through March 2028 reduces immediate energy risk, but structural dependence on alternative routes and reserves remains. The shift away from Middle Eastern oil signals a permanent reordering of Asian energy markets.

FAQs

Disclaimer:

The content shared by Meyka AI PTY LTD is solely for research and informational purposes.  Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.