Middle East is a major source of oil and LNG globally
India and other Asian countries are most dependent on Middle East oil and gas, which makes them vulnerable to supply disruptions if the conflict that has erupted following the Israeli and U.S. attack on Iran continues.
Here is an overview of the imports and stockpiles of major Middle Eastern buyers.
INDIA In January, the share of Middle Eastern crude oil in India’s crude imports reached its highest level since late 2022. This is amounted to?about 2,74 million barrels a day. Refiners have reduced their intakes of Russian oil.
India has enough crude and refined fuel in its inventory to cover demand for 74 days. This includes the stock held by companies as well as strategic petroleum reserves.
According to sources, India's crude and refined fuel stock could last up to 20-25 days.
According to Kpler, India, which is the fourth largest LNG importer in the world, purchases about two thirds of its LNG from Qatar, Oman and the UAE.
China is the largest crude oil importer in the world and also the largest buyer of Iranian crude, but the risk of shortages near term has been reduced by the large amounts of crude stored on floating storage and in strategic stockpiles.
About?half of China’s oil imports are from the Middle East.
Kpler reports that the country imported an average of 1,38 million barrels of Iranian oil per day last year. This represents 13% of its total seaborne imports. In late January, another 42 million barrels Iranian crude oil were stored on tankers across Asia.
China has spent many years building its strategic reserves. It has built new storage facilities and bought crude oil from a global market in surplus. Beijing is very careful about the size of its reserves. Analysts estimate that it's around 900,000,000 barrels or just over three months worth of imports.
China is the largest importer in the world of liquefied gas. Around a third comes from the Middle East.
Around 95% of Japan's oil imports come from the Middle East. Of this, 70% pass through the Strait of Hormuz.
Japan imported 2.8 millions barrels of oil per day from Saudi Arabia in January. The United Arab Emirates (UAE), Kuwait, and Qatar also supplied the supply.
Japan has emergency oil reserves that are equivalent to 254 days' consumption.
Japan, as the world's second largest liquefied gas importer, sourced 40% of its supplies from Australia last year, or 25,8 million metric tonnes. Japan imports 11% of its LNG from the Middle East, namely Qatar, Oman, and the UAE.
Minoru Kihara, the Chief Cabinet Secretary, said that Japanese companies had LNG inventories equivalent to approximately three weeks' consumption.
In an emergency, Japan could also redirect some of the LNG it imports back to its home country.
SOUTH KOREAN
According to Korea International Trade Association, South Korea imports 70% of its oil, and 20% of its gas from the Middle East.
The South Korean Industry Ministry announced in December that the total government strategic oil reserve had reached 100 million barrels. Private sector reserves are 95 million additional barrels.
An official from the South Korean government said that on Monday, the combined stockpile of the country was enough to cover 208 days' worth of consumption.
The ministry announced on Sunday that the country will look to obtain additional volumes from outside the Middle East, if the supply disruptions continue.
EUROPE
Kpler data shows that the Middle East is a major supplier of crude oil to Europe. The Middle East's share in Europe's crude import mix is about 5%. Kpler data shows that Europe is more dependent on Middle East fuels, and the Middle East is Europe's largest supplier of middle distillates including jet fuel and diesel.
UNITED STATES
In recent years, the United States has drastically reduced its dependence on oil produced in the Middle East. It is now the largest producer of oil and natural gas. Energy Information Administration reports that the United States bought less than 0.9million bpd last year from Gulf countries including Saudi Arabia Iraq and Kuwait. This is compared to a demand for more than 20million bpd in the U.S.
After the hostage crisis of 1979, the U.S. banned oil purchases from Iran. The U.S. is the top LNG exporter in the world, but imports very little liquefied gas from the Middle East. It imported more LNG last year from Trinidad and Tobago, than Qatar, which was the only Middle East country that it received LNG.
(source: Reuters)
