TOKYO - The Japanese government has established a plan to secure sufficient oil through early next year by utilizing alternative routes and procurement methods, as the effective closure of the Strait of Hormuz continues to disrupt global energy flows, prompting full-scale efforts from May to secure alternative sources of crude oil.
According to sources familiar with the matter, Japan expects to secure around 60% of last year’s supply levels by May through expanded imports from the United States and the use of alternative shipping routes from the Middle East that bypass the strait.
To cover the remaining shortfall, the government plans to rely on its national reserves, which currently amount to approximately eight months’ worth of supply, and is considering releasing an additional 20 days’ worth of oil from these reserves in May.
By combining these measures, the government estimates that it will be able to secure the necessary volume of crude oil through the beginning of next year.
However, officials caution that many aspects of the plan remain under coordination, and with concerns over a further deterioration in the situation involving Iran, uncertainty over the outlook persists.
Source: TBS
