Commodities

Japan May Stop Oil Import From Iran After All

Due to Trump’s constant pressure, Japan’s oil refineries are likely to stop the import from Iranian crude oil. The head of Japan’s oil refiners’ association cleared the matter on Thursday, saying, Japan will stop loading Iranian oil shipments by the mid-September.

The ‘Trump Pressure’ Is Working

The President of the U.S. recently urged those countries that still have tie-ups with Iran regarding oil import to stop their business from November as it reimposes sanctions over the nuclear program of Tehran. However, the U.S. will provide an exemption for those countries who are reliant on Iranian supplies. Several Japanese oil refineries are asking its government to maintain certain Iranian imports and push the U.S. to grant this exemption. But, a Japanese unnamed authority cleared that winning waivers from the U.S. will be difficult for Japan.

Takashi Tsukioka, the President of the Petroleum Association of Japan (PAJ), stated that Japan’s oil refiners have been preparing for other alternatives on the forecast of the U.S. sanctions. Considering the payments are to be completed by the end of October, it is crucial that their refiners would finish Iranian oil before mid-September. Furthermore, PAJ had stated last month that Japanese refiners may stop importing oil from Iran; Thursday’s statement gave more details on this matter.

The Hindu reported that Japan is the world fourth-biggest oil importer and the leading industry sources said the shipping companies had told them that they would stop carrying oil cargoes from Iran. Now that Japan cannot import oil from Iran, it is looking for other suppliers from the Middle East and the U.S. Last year, Japan imported roughly 1,72,216 barrels of oil per day from Iran, and Iranian oil accounts for 5.3 percent of the country’s total import. Now, the question is who will aid Japan to fulfill its oil requirement and fill the shoes as Japan’s oil importer.

[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]
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Swamini Kulkarni holds a Bachelors Degree in engineering and works as a content writer. She is deeply fascinated by technological advancements and the trending topic.

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