Japanese oil refiners foresee no immediate impact on crude despite geographical unrest

Japanese oil refiners, despite escalating tensions in the Middle East, foresee no immediate impact on crude procurement, Reuters on Wednesday.

Shunichi Kito, head of the Petroleum Association of Japan (PAJ), stated that Japan maintains reserves to ensure stable oil supplies in contingencies.

While the recent Iranian counter-attack on Israel did not hinder procurement, Kito emphasised the importance of preparedness in case of broader unrest in the Middle East.

Japan holds a 240-day oil reserve across public and private sectors. Although oil prices softened post the Iranian attack, Japan, heavily reliant on Middle Eastern crude (importing over 95 per cent of its oil from the region), explores alternative sources such as West Africa and North America.

Kito, also president of Idemitsu Kosan, highlighted challenges in switching to new supplies due to refinery design constraints.