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Following US Iranian Supply Block Fuji Oil Taps Spot Crude Oil Markets

Japan’s Fuji Oil Co wants to secure different crude supplies via interval contracts, and by hitting the spot market after the U.S. terminated reservations on sanctions on Iran, the corporate’s president stated on Thursday.

Fuji Oil President Atsuo Shibota mentioned he doesn’t see any issues in securing oil supplies from suppliers apart from Iran; however, he expects they might elevate costs by up to100 million yen ($911,000) a month for the corporate.

“We’re in a state of affairs where we can purchase crude from the free market, so we do not anticipate supply disturbance even without Iranian oil,” Shibota stated, declining to say what suppliers they would approach.

He was addressing at a press conference in Tokyo. Takahiko Yamamoto, a director at Fuji Oil, informed after the press convention that the refinery had already reserved most of its supplies for June, primarily by purchasing on the spot market.

America reimposed consents on Iran in November after removing from a 2015 nuclear accord between Tehran and six world powers last year. These sanctions have already bisected Iranian oil exports to 1 million barrels per day (bpd) or much less.

Washington, wanting to cut Iran’s sales to zero, said in April all consents waivers for those buying Iranian oil would end at the beginning of May.

Iran says this won’t occur, though its officers are the mainstay for a drop in supplies.

Fuji Oil mentioned Iranian oil responsible for about 20% of the corporate’s supplies within the fiscal year during March, down from around 30% last year.

The corporate operates one refinery, the 143,000-bpd Sodegaura center.

Fuji Oil purchased 1.5 million barrels of Oman crude, Banoco Arab Medium from Bahrain, and Upper Zakum, an Abu Dhabi grade, to fill in June in a spot tender secured last month, according to reports.

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