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Japan rushes Omani oil via at‑sea swap as reserves dwindle

Bloomberg Markets •
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The Very Large Crude Carrier Bright Horizon left the Mumbai basin on Monday, bound for Japan’s Kiire refinery hub. It completed an offshore cargo swap, taking on Omani crude from the Suezmax Shenlong. Ship‑tracking data shows the partially filled vessel now sailing south, underscoring the urgency of Japan’s import strategy. The quick turnaround also demonstrates the flexibility of charter agreements in a congested market.

Japan has been running thin fuel stocks after a string of refinery outages and weaker shipments from the Middle East. With domestic inventories hovering near lows, refiners have turned to costly at‑sea transfers to avoid production cuts. The maneuver reflects a regional scramble as Asian demand outpaces supply amid tightening oil markets. Energy ministers in Tokyo have warned that prolonged shortages could force plant shutdowns.

The ad‑hoc transfer adds roughly 500,000 barrels to Japan’s inbound supply, cushioning spot prices that have risen 3% this week on tightness fears. Traders note that such improvisations signal limited spare capacity on conventional shipping routes, potentially nudging freight rates higher. For investors, the episode highlights the premium placed on secured cargoes in an increasingly volatile Asian oil market.