Japan Refiners Seek New Crude as Output Remains at 67.8%
Japanese refineries ran at 67.8% capacity last week due to Middle East supply cuts. Tokyo is sourcing oil from the US and other regions to replace lost imports.
Refining operations in Japan were maintained at approximately two-thirds of their total capacity last week, as the industry continues to grapple with supply disruptions caused by the conflict in Iran. According to data from the Petroleum Association of Japan, refinery runs stood at 67.8% for the week ending April 11, showing little change from the 67.7% recorded the previous week. This level remains significantly lower than the utilization rates of over 80% observed before the outbreak of hostilities in late February.
The challenge of replacing Middle Eastern crude is significant, as these supplies typically constitute 95% of the nation's imports. While the government has released oil from the national stockpile and secured substitutes for over half of the volume usually transported through the Strait of Hormuz, technical constraints at domestic plants limit the speed of this transition. Most facilities are optimized for medium-sour grades rather than the light-sweet varieties often associated with West Texas Oil or global benchmarks like Brent Crude Oil.
