News On Japan

Japan Holds Eight Months of Oil Reserves but Faces Material Shortages

TOKYO - A month has passed since the United States and Israel launched attacks on Iran, and while Japan holds oil reserves equivalent to roughly eight months of domestic consumption, concerns are growing that rising crude prices and supply disruptions could begin to affect everything from plastic bottles to medical IV tubes.

Crude oil futures have surged sharply, climbing from 67 dollars per barrel on February 27th before the conflict to 98 dollars on March 20th, briefly falling to 84 dollars around March 23rd after an announcement delaying an attack on Iranian power facilities, before rising again to 103 dollars on March 30th amid renewed uncertainty.

The continued de facto closure of the Strait of Hormuz, a route that accounts for roughly 20 percent of the world’s oil supply, has heightened fears of further disruption to the global economy, with Asia particularly exposed due to its heavy dependence on Middle Eastern crude.

According to Takafumi Yanagisawa of the Institute of Energy Economics, Japan, approximately 20 million barrels of oil pass through the Hormuz route each day, while alternative supply routes such as Saudi Arabia’s pipeline to the port of Yanbu can handle about 5 million barrels daily.

However, risks remain elevated after Yemen’s Iran-aligned Houthi forces signaled their intention to target shipping routes, a development that Nomura Research Institute executive economist Nobuhide Kiuchi said could push prices higher by an additional 5 to 10 dollars per barrel.

As uncertainty grows, governments around the world have begun urging energy conservation measures.

Prime Minister Sanae Takaichi wrote on social media on March 29th that Japan’s needs are currently being met through the release of strategic reserves, calling on the public to remain calm.

Estimates suggest oil stockpiles vary widely across Asia, with Japan holding about eight months’ supply, South Korea about seven months, Thailand three months, the Philippines around one and a half months, and Sri Lanka just 25 days.

In response, countries have moved quickly to introduce conservation measures.

South Korea has implemented a vehicle restriction system based on license plate numbers, limiting when approximately 1.5 million government and public-sector vehicles can operate.

Thailand has called for reduced use of air conditioning in government offices and encouraged limiting elevator use.

The Philippines is recommending a four-day workweek for private companies, while Sri Lanka has designated Wednesdays as non-operational days for most public services except essential sectors such as hospitals and immigration.

Despite these measures, the impact of oil consumption can be difficult for individuals to grasp.

Yuki Kinoshita, a parenting influencer, noted that while water conservation measures are easy to visualize, reducing oil usage is less straightforward, particularly for those living in rural areas where dependence on cars is high.

Even when oil is mentioned, its use in daily life is not always visible, and there is often a delay before rising costs are reflected in consumer prices, making the situation harder for the public to fully perceive.

In Japan, discussions are beginning over how to respond without stalling the economy.

At a joint ruling party meeting on March 24th, petroleum industry executives cited the International Energy Agency’s ten-point plan for reducing fuel demand as a potential framework.

These measures include promoting remote work, lowering highway speed limits by 10 kilometers per hour, encouraging public transport use, introducing alternating vehicle restrictions in urban areas, expanding car sharing, and avoiding air travel when alternative transport options exist.

While the government remains cautious about calling for conservation too early out of concern for economic activity, experts warn that delaying action may not be sustainable.

Go Matsuo, head of the Institute of Energy Economics and Society, pointed out that countries such as South Korea, Thailand, the Philippines, and Sri Lanka face more immediate risks due to limited refining capacity or reliance on imports.

Japan, by contrast, is not in immediate danger, but Matsuo stressed that the government will need to carefully consider when to shift toward conservation measures.

Ultimately, the decision will come down to political timing, as questions grow over how long the country can continue operating as usual, not only in fuel consumption but also in the use of petroleum-based products such as plastics, which could soon face supply constraints if the situation persists.

Source: TBS

News On Japan
POPULAR NEWS

Two typhoons moving across the Pacific southeast of Japan are expected to remain well away from the Japanese mainland, but powerful swells could bring rough seas to a wide stretch of the country's Pacific coastline throughout the three-day holiday weekend, according to forecasts updated at 3 a.m. on October 10.

A series of cyberattacks has disrupted business operations and exposed millions of customer records across Japan, with a ransomware attack on a cloud service provider affecting 495 companies and local governments nationwide, while convenience store operator Lawson has disclosed a separate breach involving more than 2.15 million personal information records.

Japan's first 360-degree projection mapping show will open at the Osaka City Museum of Fine Arts on October 10, transforming the historic building into an immersive world of light, music, and seasonal imagery, with organizers hoping the attraction will also help stimulate the city's nighttime economy.

Tokyo University of Science professor emeritus Kenzo Soai has been awarded this year's Nobel Prize in Chemistry together with French chemist Henri B. Kagan for discoveries that transformed scientists' understanding of how chemical reactions can favor one of two mirror-image forms of a molecule.

The US military suspended activities by all forces stationed in Okinawa for 48 hours from noon on October 7, an unusual measure following the arrest of a US Marine in connection with a robbery and murder case that has renewed scrutiny of crimes involving American service members.

MEDIA CHANNELS
         

MORE Business NEWS

Tokyo stocks fell sharply on June 26 as investors locked in profits from Japan’s record-setting AI-driven rally, with SoftBank Group and chip-related shares leading a broad retreat after reports that OpenAI may delay its initial public offering.

Japan recorded a current account surplus of 4.062 trillion yen in August, an increase of 12% from a year earlier, driven primarily by a sharp rise in income from overseas investments, even as higher crude oil prices pushed the country's trade balance into deficit.

Household spending in Japan fell 3.1% in August from a year earlier, marking the ninth consecutive month of decline as rising food prices continued to weigh on consumer budgets, according to the latest household expenditure survey released by the Ministry of Internal Affairs and Communications on October 9.

Tokyo stocks ended nearly unchanged on August 12, with the Nikkei 225 at 66,988.82, as gains in energy and financial shares offset weakness in electronics and pharmaceuticals while investors weighed higher crude oil prices, a weaker yen and growing expectations for another Bank of Japan rate increase.

Japan is entering a more difficult phase in its cybersecurity challenge, as a succession of major data breaches and ransomware attacks exposes weaknesses not only in corporate IT systems but also in supplier networks, governance structures and operational resilience.

Japan's four largest beer makers were subjected to simultaneous compulsory searches on October 7 over suspicions they coordinated wholesale prices for beer and other alcoholic beverages, in a rare cartel investigation that could lead to criminal charges.

Tokyo stocks fell on October 7, with the Nikkei 225 closing at 70,036, down 648 points, as investors took profits in semiconductor and artificial intelligence-related shares after the index’s rapid climb above 70,000 earlier in the week.

Japan's prolonged period of rising prices is continuing to squeeze households and businesses, driven by the weak yen, higher raw material costs and rising wages, forcing consumers to change how they shop and cook while companies search for ways to contain costs without losing customers.