Japan Crude Oil
Over the past three years, Japan has significantly increased its imports of U.S. crude oil, creating a growing opportunity for American energy companies. Japan-bound crude shipments from the United States in January through May 2026 totaled approximately 18.9 million barrels (3 million kiloliters), nearly three times the volume shipped in the same period in 2023. In February 2026, the United States realized a record high shipment of roughly 5.3 million barrels (844,698 kiloliters) to Japan.
Recent instability in the Middle East, including the Iran conflict, reminded Japan’s policymakers and refiners that diversification of oil procurement is an energy security imperative. While Japan may look to other prospective oil suppliers such as Brazil, Guyana, Canada, and Argentina, the United States has emerged as the most commercially realistic alternative because of its large-scale production capacity, reliable export infrastructure, and ability to supply Japan with secure, diversified crude oil. As of April 30, 2026, Japan’s total oil reserves amount to approximately 390 million barrels (61.59 million kiloliters), which is enough to last for 179 days, according to Japan’s Ministry of Economy, Trade, and Industry.
The global oil crunch comes at a time when the United States and Japan are deepening energy cooperation to strengthen supply chain resilience. In March 2026, Japanese Prime Minister Sanae Takaichi announced a joint project to stockpile U.S. crude oil and plans to expand imports of American crude. By July 2026, half of Japan’s crude oil imports are expected to come from the United States.
As Japan imports 97% of its oil and has no domestic pipeline, all crude oil must arrive by tanker. Diversifying away from Middle East crude oil reduces Japan’s systematic risk and further stabilizes its supply during crises. Alaskan crude can reach Japan in 12 days, which is 8 to 13 days faster than Middle Eastern shipments. Japanese oil companies are expanding their procurement of low-sulfur crude oil from the United States, particularly WTI Midland crude, with the aim of diversifying their crude oil sources and improving refining profits. WTI Midland crude is a light, low-sulfur crude oil that can be used to produce relatively large amounts of high-value-added products such as gasoline and diesel fuel. Depending on the price difference between WTI and Dubai crude, which is the benchmark for crude oil trading in Asia, as well as transportation costs, it may be possible for Japan to secure refining margins equivalent to or even higher than those of Middle Eastern crude.
U.S. Commercial Service Japan (CS Japan) stands ready to assist U.S. crude oil companies looking to participate in new Japanese oil procurement opportunities. Our network includes managers at major Japanese oil companies and key private sector stakeholders. For more information, please contact CS Japan at Office.Tokyo@trade.gov.