Japanese Prime Minister Sanae Takaichi has instructed Minister of Industry Ryosei Akazawa to manage the purchase of approximately 70% of the crude oil that Japan consumes in June from regions far from the Middle East. This decision aims to reduce dependence on an area with high geopolitical tension and diversify the Asian country's supply sources.
The logistical challenge of replacing Middle Eastern crude oil 🛢️
The measure involves a considerable technical and logistical challenge. Japan has historically depended on the Middle East for more than 90% of its crude oil, so replacing that volume in one month requires adjusting contracts, maritime routes, and agreements with countries such as the United States, Brazil, or African nations. Local refineries must verify the compatibility of light or heavy crude from these new sources with their current processes, avoiding unplanned shutdowns.
Japan's Plan B: fewer sheikhs and more cowboys 🤠
Now Japan wants oil from Texas cowboys or the Brazilian jungle rather than from its desert friends. It seems crude oil diplomacy is turning into an express move: changing 70% of the energy bill in thirty days. If it fails, perhaps Takaichi will ask Akazawa to fill the tanks with sake. At least it doesn't explode, but the car won't start.