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Market Chatter: Japan's May Crude Imports Set to Recover as Refiners Find Alternative Routes

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Japan's May crude oil imports are forecast to reach roughly 1.7 million barrels per day, about 75% of the year-ago level, as refiners boost alternative supplies while the Strait of Hormuz stays largely closed, Bloomberg News reported on Tuesday.

According to Bloomberg's vessel-tracking data up to May 19, this figure is expected to surpass the government's earlier forecast, driven mainly by independently arranged shipments from the U.S. and Saudi Arabia via the Red Sea, the news wire said.

Some cargoes destined for Japan could still be diverted, it said.

On May 12, the Japanese government projected alternative supplies from outside Hormuz and from the U.S. would reach about 1.4 million barrels per day in May, plus an extra 70,000 barrels a day from vessels that passed through the strait on April 29, the publication said.

Authorities had intended to cover any deficit by tapping into national reserves, the report said.

(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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