Preliminary data from Japan’s Ministry of Economy, Trade, and Industry (METI) showed that the country’s crude oil imports plunged to more than five-decade low in July as the coronavirus pandemic ravaged oil consumption despite the peak summer demand season in the month. According to METI data, Japan’s crude oil imports fell 31.9% year-on-year to 2.09 million bpd in July, the lowest for the month since 1967.
Japanese refiners reduced intake of Middle Eastern crudes in July, with imports from Saudi Arabia and the UAE falling to 928,930 bpd and 710,912 bpd, reflecting 8.7% and 22% year-on-year declines, respectively. Imports from Qatar and Kuwait also slumped 46.5% and 34.8% year-on-year to 159,962 bpd and 141,781 bpd, respectively. Japan took no barrel of American and Indonesian crudes during the month, METI data showed.
Compared to June, July’s crude exports rose by 9.4%, supported by improved demand for refined products. According to METI data, domestic gasoline sales rose by 4.7% from June to 818,701 bpd in July, while jet fuels sales increased by 25.2% to 61,636 bpd over the same period. Despite the increase in domestic fuel sales, Japanese refiners were cautious about increasing crude purchases and distillation rates. As a result, Japan’s oil products imports surged 23.2% year-on-year to 623,650 bpd in July.
