Key insights
- A Japanese refiner is buying Mexican crude due to supply disruptions from the Strait of Hormuz. While this specific event has limited direct impact, it signals potential for broader supply chain vulnerabilities and rising energy costs, which could indirectly pressure US equities if sustained.
Investing.com -- A Japanese refiner purchased Mexican crude oil for the first time in three years as supply disruptions from the Iran war and the near-closure of the Strait of Hormuz force the country to seek alternative sources.
Cosmo Energy Holdings Co. is set to receive 1 million barrels of Isthmus crude oil in the coming days, according to a shipping report seen by Bloomberg. The vessels Eagle Kuantan and Eagle Kangar will load the oil from Pemex’s Pajaritos terminal on Mexico’s Atlantic coast. The oil is being supplied by Petroleos Mexicanos’ trading arm PMI.
Japan imports over 90% of its crude oil from the Middle East, primarily from Saudi Arabia, the United Arab Emirates, Kuwait and Qatar. These countries have been affected by the near-shuttering of the Strait of Hormuz. The supply shortage has impacted Japanese sectors ranging from food production to medical equipment manufacturing.
Tokyo-based Cosmo said it has secured supplies from Mexico and the United States to maintain operations at its three refineries for the next three months.
In April, Japanese Prime Minister Sanae Takaichi discussed the possibility of Pemex supplying oil to Japan during a conversation with Mexican President Claudia Sheinbaum about the Iran war.
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