Japan's May crude import price hits record high in yen terms amid Mideast war

TOKYO, June 17 : Japan's crude oil import price hit a record high in yen terms in May, surpassing April levels, Ministry of Finance data showed on Wednesday, driven by a surge in crude prices resulting from supply disruptions caused by the closure of the Strait of Hormuz.

• The customs-cleared import price rose to 114,076 yen ($712) per kilolitre, the highest since comparable records began in 1979, exceeding the previous record of 101,389 yen in April.

• In dollar terms, the price stood at $114.58 per barrel, the 17th highest on record.

• Japan's crude import price, known as the Japan Crude Cocktail (JCC), is based on customs-cleared CIF (cost, insurance and freight) prices and reflects global crude trends with a roughly one-month lag due to shipping times.

• Higher JCC prices raise the cost of importing crude and liquefied natural gas, a key fuel for thermal power generation, and feed directly into higher electricity prices.

• Crude oil import volumes fell 57.3 per cent from a year earlier in May, following a 64 per cent plunge in April, the steepest drop since 1980.

• By region, imports from the Middle East tumbled 61.9 per cent to 3.967 million kilolitres, while those from the United States rose 24 per cent to 576,000 kilolitres.

• In value terms, crude imports declined 28.5 per cent.

• Before disruptions to the Strait, Japan sourced about 95 per cent of its crude imports from the Middle East.($1 = 160.1600 yen)