TOKYO (AP) — According to data released by the Ministry of Economy, Trade and Industry on Wednesday, Japan’s dependence on crude oil from the Middle East increased to 95.1% in 2023. The country’s oil imports totaled 147.7 million kiloliters last year (2.5 million barrels per day), marking a 7% decrease from the previous year. The share of oil imports from Saudi Arabia and the United Arab Emirates rose to 40.4% and 39%, respectively, up from 38.1% and 37.9%.
Conversely, Japan’s oil imports from Russia declined to a mere 0.1% of the total, a significant drop from 1.3% in 2022 and 4% in 2021.
These figures come amid recent volatility in oil prices, influenced by factors such as the ongoing conflict in Ukraine and a global economic slowdown.
In response to weak economic data from China, the world’s largest crude importer, oil prices experienced a decline on Wednesday. Nevertheless, they remained poised for their first monthly gain since September due to lingering concerns about Middle East supply disruptions.
Brent crude futures for March delivery, expiring on Wednesday, fell by 87 cents, or approximately 1.1%, to $82 a barrel by 11:03 a.m. GMT. The more active April contract was down 80 cents, or about 1%, at $81.70. U.S. West Texas Intermediate (WTI) crude futures dropped by 82 cents, or around 1.1%, to $77 a barrel.
A recent official factory survey revealed that manufacturing activity in China, the world’s second-largest economy, contracted for the fourth consecutive month in January. Tamas Varga of PVM Oil Associates commented, “The factory data confirms our view that China, at least for now, is a headwind for global oil demand growth.”
In other developments, oil ministers from OPEC and its allies, collectively known as OPEC+, are scheduled to convene on Thursday to discuss production policy. While the group is widely anticipated to maintain output levels for April, observers will closely monitor the meeting for any indications of a policy shift.
Russian Deputy Prime Minister Alexander Novak stated on Wednesday that current oil prices appropriately reflect the market situation. “The market needs silence… Any comment one way or another affects the market. I want to say that the current price on the market adequately reflects the current situation,” Novak told reporters. OPEC+ sources suggested last week that the group is likely to decide on its oil production levels for April and beyond in the coming weeks.