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Market Chatter: Japan's Cosmo Energy Turns to Mexican Oil as Hormuz Closure Disrupts Supplies

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Japanese refiner Cosmo Energy Holdings bought Mexican crude oil for the first time in three years, as Tokyo scrambles to secure alternative supplies following severe disruptions to Middle Eastern exports, Bloomberg reported Tuesday, citing shipping data.

The vessels Eagle Kuantan and Eagle Kangar are scheduled to load about 1 million barrels of Isthmus crude from Petroleos Mexicanos' Pajaritos terminal on Mexico's Atlantic coast, the report said.

Japan traditionally relies on the Middle East for more than 90% of its crude requirements, with the bulk of its imports originating from Saudi Arabia, the UAE, Kuwait, and Qatar. The Arabian Gulf producers are being affected by the effective closure of the Strait of Hormuz.

has reached out to Cosmo Energy for a comment.

The ongoing conflict has triggered a domestic shortage of petroleum products, creating a ripple effect across the Japanese economy.

Cosmo Energy Holdings said it had secured crude oil supplies from Mexico and the US, providing a critical buffer for its refining operations amid geopolitical tensions that are choking traditional trade routes.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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