Japan Cuts Refinery Runs as Oil Supply Disruptions Mount
Japanese refiners cut utilization to 69.1% as Middle East conflict hits supply. The government will release oil reserves to stabilize record gasoline prices.
Refineries in Japan have significantly reduced their operations as the ongoing conflict involving the United States, Israel, and Iran continues to disrupt crude oil supplies from the Middle East. Data from the Petroleum Association of Japan (PAJ) indicates that utilization rates plummeted to 69.1% in the week ending March 14, a sharp decline from 77.6% the previous week and a drop from levels exceeding 80% prior to the outbreak of hostilities.
The supply crunch has led to a notable reduction in domestic fuel inventories. Gasoline stocks in the country fell by nearly 10%, while kerosene stockpiles dropped by 12%. Jet fuel and diesel stocks also saw declines of 3% and 1%, respectively. Conversely, liquefied natural gas (LNG) holdings by major utilities rose to 2.3 million metric tons, surpassing levels recorded during the same period last year.
