Japan did not ask Saudi for more oil - min

  • Share via facebook
  • Tweet this
  • Bookmark and Share
(Image for illustrative purposes).

(Image for illustrative purposes).

Japan has not asked Saudi Arabia to supply more oil, the Japanese trade minister said on Sunday after media reports that he had flown to the world's largest oil exporter to sign an emergency supply pact.

Japan's Nikkei newspaper said last week that Toshimitsu Motegi would sign an agreement during a visit to Saudi Arabia to allow Tokyo to call for more oil in the event of emergency shortages.

Japan's reliance on oil imports has intensified since the shutdown of many nuclear power plants after the Fukushima disaster in 2011, but any deal to give Japan priority access to Saudi crude in the event of supply shortages would worry other oil importers.

Motegi met Saudi Deputy Oil Minister Abdul Aziz Bin Salman bin Abdulaziz in Saudi Arabia on Saturday.

"At the moment, there is no concern whatsoever that Japan is under supplied in terms of oil," Motegi told journalists on Sunday when asked whether he had sought assurances that Riyadh would sell Japan more oil in the event of a supply crisis.

"It was not that we have asked for any specific request for increase of production or supply. It was just the confirmation of the relationship we have," he said through an interpreter in the United Arab Emirates. He gave no further details.

Crude imports from Saudi Arabia accounted for 31 percent of Japan's total in 2012, with shipments rising 5 percent from a year earlier to 1.14m barrels per day, partly offseting a 39.5 percent decline in Iranian crude imports due to sanctions.

State-run Saudi Aramco signed a deal with Japan in 2010 to store 3.8m barrels of crude in the Asian nation's Okinawa Oil Base for emergency supplies to the kingdom's customers in the region.

Saudi Arabia is the only country with enough spare oil production capacity to compensate for any significant global supply disruptions. If Japan were to secure priority access to it, that could concern other buyers.

Oil markets have been on edge because of tensions between the West and Iran over Tehran's nuclear programme, following disruptions in Libya in 2011 and attacks on oil facilities in Yemen.

OPEC heavyweight Saudi Arabia has repeatedly pledged to supply its customers with all the oil they need. With a stated capacity to produce up to 12.5m barrels per day (bpd), it could pump nearly 3.5m bpd more than it did last month.

Related:
Join the Discussion

Disclaimer:The view expressed here by our readers are not necessarily shared by Arabian Business, its employees, sponsors or its advertisers.

Please post responsibly. Commenter Rules

  • No comments yet, be the first!

Enter the words above: Enter the numbers you hear:

All comments are subject to approval before appearing

Further reading

Features & Analysis
Back in business

Back in business

Iran’s tankers are back on the oceans as sanctions on the Islamic...

A new future for Saudi Arabia?

A new future for Saudi Arabia?

The vast Wadd Al Shimal phosphate mine in the north of Saudi...

Will shale shake the Middle East?

Will shale shake the Middle East?

The debate over shale’s impact on the GCC continues. Will this...

Most Discussed
  • 15
    Germany puzzled as UAE think tank ordered to close

    Matt, your words sound kind of funny given the role the Britain has played in this region for so many decades.
    And given the democratic tradition that... more

    Thursday, 17 April 2014 7:10 PM - one of the joes
  • 10
    UAE father who whipped son to death wins appeal

    "Under Sharia, a parent cannot be executed for killing their child"
    A spouse could be executed if he/she kills his/her spouse, as none of them is... more

    Friday, 18 April 2014 3:38 PM - Nihar
  • 3
    To diet or not to diet?

    It is best to eat by your blood type. Following this diet is miraculous. Generic diets don't always work as certain foods are not good for the individual... more

    Friday, 18 April 2014 11:49 AM - Shamira Mitha
  • 54
    Three UAE women attacked with hammer at London hotel

    I really feel that Arabian Business.Com should now close this comments page. This should be all about sympathy for the families not what it is/has turned... more

    Wednesday, 16 April 2014 1:06 PM - Adrienne
  • 51
    Why Dubai isn't a plastic city

    What is definitely not a plastic city. The Arabs have a culture dating back to several centuries. 50 years back Dubai was just a fishing village. Today... more

    Tuesday, 8 April 2014 3:49 PM - P. MADHUSUDAN
  • 48
    DMCC boss Ahmed Bin Sulayem entertains Robert Mugabe in Dubai

    @fga ''However today, simply because he decided to dispossess a few white farmers of their land and redistribute to the poorer indigenous blacks'' more

    Sunday, 13 April 2014 3:02 PM - Matt Williams