Japanese firms will continue buying crude oil from Iran with the maximum capacity possible before the end of the 180-day period during which it is exempt from new US sanctions on Iranian oil imports, president of the Petroleum Association of Japan said at a press conference in Tokyo.
Takashi Tsukioka said some companies and refiners in the world’s third largest economy are looking to resume oil imports from Iran, adding that the first shipments would take place before the yearend, IRNA reported.
“We cannot predict what will happen after the deadline expires…But for now we know that oil loadings from Iran are to be heavy in January-March next year since Japan sees Iran as an important crude supplier,” Tsukioka noted.
Though Iranian oil makes up a relatively small part of the total, industry experts say consumers in Japan may have to pay more for gasoline and other petroleum-related products if imports finally draw to a halt.
US President Donald Trump in May abandoned the 2015 international nuclear deal signed between Tehran and the six world powers and reinstated sanctions against Iran.
On November 5 he reimposed sanctions on Iran's key banking, energy and shipping industries but granted waivers to Japan and seven other countries, allowing them to temporarily continue buying Iranian oil for six months, as long as they work to reduce crude oil imports from Iran to zero.
Japanese refineries suspended shipments of Iranian crude ahead of the Nov. 5 sanctions but are now apparently preparing to resume imports.
Main Customers
Among the importers of Iranian crude is Japan’s second-biggest refiner Idemitsu Kosan that hopes to buy the remainder of its contractual volume of Iranian oil during the exemption period, said Tsukioka, who also is chairman of the company.
Japanese refiner Fuji Oil Co. is also set to resume Iranian purchases. The refiner is under discussions to obtain final approval from the Japanese government for loadings that should start in January. The company is looking to buy South Pars condensates as well. Volumes are reported to be below 1 million barrels per month.
Japan imported about 172,000 barrels per day of Iranian crude last year.
As of September, Iranian crude oil accounted for 5% of Japan’s total crude intake and Tsukioka said in September the government in Tokyo will strive to maintain a good relationship with Tehran despite the American restrictions.
Energy-scarce Japan relies heavily on energy imports. In recent years about 80% of its oil imports have come from the Middle East.
Though Iranian oil makes up a relatively small part of the total, industry experts say consumers in Japan may have to pay more for gasoline and other petroleum-related products if imports finally draw to a halt.
