Japan July Crude Oil Imports Fall 1.9%, Trade Ministry Says

Japan, the world’s third-largest oil user, cut crude oil imports by 1.9 percent from a year earlier in July as industrial production grew at a slower pace than expected by economists.

Crude imports dropped to 17.3 million kiloliters in July, or about 3.5 million barrels a day, according to data released today by the Ministry of Economy, Trade and Industry.

Japan’s industrial production climbed 0.3 percent in July from June, missing the 1.4 percent increase expected by 28 economists in a survey by Bloomberg. The economy has contracted for three straight quarters and a surge in the yen has damped demand for the country’s cars and durable goods.

Saudi Arabia supplied the most crude to Japan last month, contributing 33.6 percent of overall imports, the data showed. Imports from the world’s biggest exporter were up 36.5 percent. Supplies from Iran fell 34.4 percent.

Imports of crude from Southeast Asia more than doubled in July as Vietnam’s exports to Japan increased 46 percent, according to the data. The country has purchased more of the country’s heavy, low-sulfur oil to burn in power plants after the March 11 earthquake shut nuclear facilities.

Oil products, including gasoline and diesel, brought into Japan rose 4.5 percent to 3.065 million kiloliters compared with July 2010, the data showed.

To contact the reporter on this story: Christian Schmollinger in Singapore at christian.s@bloomberg.net

To contact the editor responsible for this story: Alexander Kwiatkowski at akwiatkowsk2@bloomberg.net.