Japanese refiners adjust procurement strategies, shifting to crude oil sources outside the Persian Gulf

⑴ Affected by supply disruptions caused by the Middle East conflict, Japanese oil refining companies are increasingly turning to crude oil sources outside the Persian Gulf, including the United States.⑵ On Friday, the Chief Financial Officer of Japan's largest oil refiner, ENEOS Holdings, stated that the company has secured its crude oil supply for August, sourcing from the United States and choosing Middle Eastern shipping routes that bypass the Strait of Hormuz; crude oil tankers for September are also planned to be procured in a similar manner.⑶ Competitor Cosmo Energy Holdings has replaced a large portion of Middle Eastern crude with supplies from the United States, Mexico, and other countries, and has stocked enough oil to last until October; Senior Executive Tomoki Iwai said that currently about half of the company's crude oil comes from North America and Central America.⑷ In addition to ongoing transportation disruptions through the Strait of Hormuz, in recent weeks the reliability of Saudi crude shipments transported via the Red Sea has also declined due to the influence of Yemen's Houthi forces, further prompting Japanese oil refiners to adjust their procurement strategies.