Japan's Cosmo Oil replaces Iran oil with other Mideast supplies
SINGAPORE (Reuters) - Japanese refiner Cosmo Oil has replaced its Iranian crude oil imports with supplies from other Middle Eastern producers ahead of U.S. sanctions on Iran in November, top company executives said.
Refiners in Japan, the world’s
“Japan will not import any crude from Iran in November because of the U.S. sanctions,” Cosmo Oil President Shunichi Tanaka told Reuters ahead of the Asia Pacific Petroleum Conference (
Saudi Arabia, the United Arab Emirates and Kuwait are supplying
Some of these producers have visited Japan and “told us if you need more crude oil, we can supply,” said Cosmo Oil’s director of supply Masashi Nakayama.
The Organization of the Petroleum Exporting Countries (OPEC) and other oil producers are considering raising output by 500,000
“Saudi Arabia has room to produce more oil to cover. They can’t cover everything but they can cover something so the impact on the whole market is not that big,” Nakayama said.
Under previous U.S. sanctions, some buyers received waivers as long as they reduced imports but the current administration aims to cut Iran’s oil exports down to zero to force Tehran to negotiate a nuclear treaty.
Still, Japanese trade officials will visit Washington again in late September in a bid to negotiate sanction waivers, the executives said.
JAPAN
Cosmo Oil, a unit of Japan’s Cosmo Energy Holdings, is the country’s third-largest oil refiner by sales.
The
In the coming winter, Japan could see a rise in kerosene oil imports after natural disasters disrupted local refiners’ operations in the third quarter, the executives said.
Typhoon
“The recent typhoon and earthquake in Japan have had a big impact on Japanese refineries as some had to shut down or reduce run rates,” Tanaka said, adding that Cosmo Oil is working to secure supplies of kerosene, which is vital for northern Japan in winter.
Ahead of IMO 2020 when ships have to switch to fuels with much lower
The refiner said it will also install scrubbers on half of the six Very Large Crude Carriers that it charters on a long-term basis.
Reporting by Florence Tan in SINGAPORE; additional reporting by Osamu Tsukimori in TOKYO; editing by Richard Pullin
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