Japanese refineries have successfully ramped up operations to over 70% of their capacity for the first time since the outbreak of the Middle East conflict in late February, Reuters reported Wednesday.
According to data released by the Petroleum Association of Japan, utilization rates climbed to 77.3% in early May before settling at 73.3% last week, the report said.
This operational rebound marks a significant recovery from the sub-70% levels seen throughout April and demonstrates Tokyo's aggressive strategy to mitigate the impact of the closed Strait of Hormuz.
To sustain these processing levels, Japan has executed its largest-ever emergency oil reserve release, making about 75 days' worth of consumption available from national stockpiles.
Traditionally reliant on the Persian Gulf for 95% of its crude needs, the world's fourth-largest economy has executed a rapid pivot toward alternative suppliers.
Refiners are now consuming crude sourced from the US, Latin America, and the Caspian region, while also taking advantage of non-sanctioned Russian cargoes to bridge the supply gap left by the maritime blockade.
While the oil sector has faced significant structural shifts, Japan's natural gas security remains relatively stable.
Because only 6% of Japan's LNG imports usually transit the Strait of Hormuz, the power sector has avoided the severe shortages currently impacting the nation's transportation and industrial fuel sectors.
The Petroleum Association of Japan did not respond immediately to' requests for comment.
(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.)