Japan turns to Canadian crude as Asia feels Hormuz supply pinch
Summary
Japan is importing crude oil from Canada for the first time since 2025 due to supply problems through the Strait of Hormuz caused by the conflict involving the US and Israel in Iran. The Trans Mountain pipeline in Canada is now a key source of oil for Japan and other Asian countries, helping them diversify their supplies.Key Facts
- A shipment of Canadian crude oil is on its way to Japan, carried by the ship Freedom Glory.
- The oil was bought by Eneos, Japan’s largest oil refiner.
- Japan lowered its economic growth forecast to 0.9% because of higher oil prices.
- Before February, Japan got over 90% of its oil through the Strait of Hormuz, which is now disrupted by conflict.
- The Trans Mountain pipeline carries up to 890,000 barrels of oil daily from Alberta to the west coast of Canada.
- Around 77% of oil exported from Vancouver this year went to Asia, up from 51% in 2024.
- Other Asian countries like India, Malaysia, and Singapore are also buying Canadian oil via this pipeline.
- Canadian Prime Minister Mark Carney said Canada does not plan to use its oil supplies as a political tool despite US tariffs on Canadian products.
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