Japanese refining industry, the largest beneficiaries of “OPEC+” decisions
Japanese refineries have become one of the largest beneficiaries of the decision of crude oil producers in “OPEC+” to increase production, according to the International Platz Petroleum Information Agency.
The agency confirmed that Japanese refineries fully support the decision of crude oil producers in “OPEC+”, where it is expected that the country’s dependence on suppliers from the Middle East will remain high in 2025 despite the efforts to diversify the sources of supply.
The report pointed out that the Japanese refining industry expressed its satisfaction with the significant decrease in the official selling prices of the major crude oil producers in the Middle East for shipments next May.
The report stated that companies, in particular, hope that OPEC’s major member states will maintain the group’s momentum to increase supplies, as their cracking margins depend significantly on the degrees of sour crude oil in the Persian Gulf.
The report indicated that as the fourth largest buyer of crude oil in Asia, Japan is expected to benefit more than other OPEC members to increase production due to its dependence on suppliers from the Middle East to more than 95% of its total needs of crude oil.
The report quoted the director of raw materials and logistical services in one of the major Japanese refining companies as saying, “It was uncomfortable to see the decrease in official selling prices for crude oil in the Middle East sharply, as the Japanese refining margins are closely related to the price structure in the Middle East and official sale prices,” the report quoted the director of raw materials and logistical services in one of the major Japanese refining companies as saying.
The report highlighted OPEC confirmation in its latest data that 8 members of “OPEC+” collectively implement 2.2 million barrels per day of voluntary production discounts, will witness an increase in their shares by 411 thousand barrels per day next May.
For his part, the international “Oil Price” international report stated that the future oil futures recorded their first weekly gain in 3 weeks with the support of a new round of US sanctions on Iran and tightening production discipline by OPEC producers and improving American export flows.
The report pointed out that in a brief trading week due to the holiday, West Texas Intermediate crude (WTI) settled at $ 64.01 a barrel, and Brent crude witnessed similar gains for the centenary, as both standards rose from their lowest levels in several weeks thanks to the width side stimuli.
The report stated that the US sanctions on Iran re -ignite the risk of the risk of presentation, as the most influential development this week was Washington’s decision to escalate the sanctions targeting Iranian crude oil exports.
The report pointed to renewed efforts by the Trump administration to restrict Tehran’s energy revenues amid the escalation of nuclear tensions. This extremist position has exacerbated concerns about the shrinking global supplies, especially in light of Iran’s oil exports recently recovered through informal channels.
He stated that the market interpretation of the sanctions is that it is an indication that the United States may impose greater restrictions on the volumes of flows to China and other Asian buyers, and the militant comments issued by the US Treasury added to the bullish tone, where traders take their sites to face potential declines in the availability of Iranian crude oil by summer.
At the end of last week, oil prices recorded a strong increase, by more than 3%, supported by hopes for a trade agreement between the United States and the European Union, and amid increasing fears related to supplies after Washington imposed more sanctions to reduce Iranian oil exports.
Brent crude futures increased $ 2.11 or 3.2% to 67.96 dollars a barrel upon settlement, US West Texas Intermediate crude rose $ 2.21 or 3.54% to $ 64.68 a barrel, and the ore rose by 5% during the week to achieve the first weekly increase in 3 weeks.
