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Ministry: Japan's Reliance on Middle East Oil Rose to 95.1% in 2023

Oil storage tanks in Japan. (Reuters)
Oil storage tanks in Japan. (Reuters)
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Ministry: Japan's Reliance on Middle East Oil Rose to 95.1% in 2023

Oil storage tanks in Japan. (Reuters)
Oil storage tanks in Japan. (Reuters)

Japan's reliance on crude oil supplied from the Middle East has increased by one percentage point to 95.1% last year, data released by the Ministry of Economy, Trade and Industry showed on Wednesday.

Japan imported 147.7 million kiloliters of oil last year (2.5 million barrels per day), down 7% from a year before, with the share of Saudi Arabia and the UAE rising to 40.4% and 39% from 38.1% and 37.9%, respectively.

Share of oil imports from Russia fell further to just 0.1% of total crude oil imports by Japan, down from 1.3% in 2022 and 4% in 2021, a year before Moscow invaded Ukraine, triggering Western sanctions.

Oil prices settled lower on Wednesday, pressured by low economic activity in leading crude importer China.

Brent crude futures for March, which expire on Wednesday, settled down 87 cents, or about 1.1%, to $82 a barrel, while the more actively traded April contract settled down 80 cents, or about 1%, at $81.70.

West Texas Intermediate crude for March delivery fell 82 cents, or 1.1%, to $77 a barrel on the New York Mercantile Exchange.

Manufacturing activity in China, the world's second-largest economy, contracted for a fourth straight month in January, an official factory survey showed on Wednesday.

"The factory data confirms our view that China, at least for now, is an impediment to global oil demand growth," said Tamas Varga of oil broker PVM.

Meanwhile, the Israel-Hamas war has widened the conflict in the Red Sea between the United States and Iran-aligned Houthi militants.

But while that has disrupted oil and natural gas tanker shipping, which is driving up delivery costs and starting to affect oil supplies, a Reuters poll suggested that record production in the West and slow economic growth will keep a lid on prices and limit any geopolitical risk premium.

Russian Deputy Prime Minister Alexander Novak said that current oil prices adequately reflect the current market situation, while global oil demand is widely seen rising by around 2 million barrels per day.

He declined to elaborate more just a day before leading ministers from the Organization of the Petroleum Exporting Countries and allies led by Russia, known as OPEC+, will meet online.

The panel, named the Joint Ministerial Monitoring Committee, can call for a full OPEC+ meeting or make recommendations on policy.

OPEC+ will likely decide its oil production levels for April and beyond in the coming weeks, OPEC+ sources said, adding that a meeting of a key ministerial panel next Thursday would take place too early to take decisions on further output policy.

"The market requires silence; any words somehow affect the market. I want to say that the current (oil) price on the market adequately reflects the current situation," Novak told reporters.

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Business

Iraq Says Kurdish Authorities Refusing to Let It Send Oil Through Their Pipeline

A truck drives at the Iraq-Iran border crossing of Bashmagh near Sulaimaniyah in Iraq's autonomous Kurdistan region on March 11, 2026. (AFP)
A truck drives at the Iraq-Iran border crossing of Bashmagh near Sulaimaniyah in Iraq's autonomous Kurdistan region on March 11, 2026. (AFP)
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Iraq Says Kurdish Authorities Refusing to Let It Send Oil Through Their Pipeline

A truck drives at the Iraq-Iran border crossing of Bashmagh near Sulaimaniyah in Iraq's autonomous Kurdistan region on March 11, 2026. (AFP)
A truck drives at the Iraq-Iran border crossing of Bashmagh near Sulaimaniyah in Iraq's autonomous Kurdistan region on March 11, 2026. (AFP)

Iraq’s oil ministry said the Kurdistan Regional Government had refused to let it use a pipeline as an alternative route for crude flows disrupted by the Iran conflict, accusing authorities there of putting up irrelevant conditions.

A senior Kurdish government official told Reuters authorities there would be happy for the Iraqi government to use the pipeline, but said Baghdad first needed to lift what he called a "dollar ‌embargo" on the ‌region.

"We want a deal. We ‌want ⁠to help Iraq ⁠and bring relief to the markets, but this embargo must end first," the official said.

Oil production from Iraq's main southern oilfields, where most of its crude is produced and exported, has plunged 70% to just 1.3 million bpd, sources told Reuters on March 8, ⁠as the Iran conflict effectively shut off ‌the vital Strait of ‌Hormuz.

Iraq's oil ministry sent a letter in early March to ‌the Kurdistan Regional Government seeking permission to pump ‌at least 100,000 barrels per day of crude from Kirkuk oilfields through the Kurdistan pipeline network to Türkiye's Ceyhan energy hub, two oil officials told Reuters last week.

The Kurdish official ‌said they had been pressing for an end to what he said was ⁠a bar ⁠on the region's banks accessing dollars for goods imported through its borders and airports.

Kurdish officials say tensions with Baghdad have risen after the federal government moved to implement a new electronic customs system, allowing it to monitor imports and revenues, a step the KRG sees as undermining its autonomy and control over trade.

Iraq's oil ministry said the Kurdistan Regional Government's Ministry of Natural Resources had "set a number of conditions unrelated to the issue of crude oil exports."

Business

Over 400 Million Barrels of Emergency Oil Reserves to Flow to Global Markets Soon, IEA Says

A woman holds a fuel pump as she fills her car tank at a gas station in the Manhattan borough of New York City on March 14, 2026. (AFP)
A woman holds a fuel pump as she fills her car tank at a gas station in the Manhattan borough of New York City on March 14, 2026. (AFP)
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Over 400 Million Barrels of Emergency Oil Reserves to Flow to Global Markets Soon, IEA Says

A woman holds a fuel pump as she fills her car tank at a gas station in the Manhattan borough of New York City on March 14, 2026. (AFP)
A woman holds a fuel pump as she fills her car tank at a gas station in the Manhattan borough of New York City on March 14, 2026. (AFP)

Oil from the International Energy Agency emergency reserves will begin flowing to global markets soon, with member countries pledging to make available 411.9 million barrels, ‌the agency ‌said in ‌a ⁠statement on Sunday.

Governments have ⁠committed to make available 271.7 million barrels of oil from government stocks, 116.6 million ⁠barrels from obligated industry ‌stocks ‌and 23.6 million barrels ‌from other sources, the ‌statement said.

It added that 72% of planned releases are in ‌the form of crude oil and 28% ⁠are ⁠oil products.

Stocks from Asia Oceania countries will be available immediately and stocks from Europe and the Americas will be available at the end of March.

Business

Saudi Economy Accelerates as Diversification and Legal Reforms Drive Growth

Quality of life represents a strategic national priority in Saudi Arabia (SPA). 
Quality of life represents a strategic national priority in Saudi Arabia (SPA). 
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Saudi Economy Accelerates as Diversification and Legal Reforms Drive Growth

Quality of life represents a strategic national priority in Saudi Arabia (SPA). 
Quality of life represents a strategic national priority in Saudi Arabia (SPA). 

Saudi Arabia’s economy has undergone nearly a decade of transformation under Crown Prince Mohammed bin Salman, as sweeping reforms and diversification efforts reshape the country’s economic landscape.

Since the launch of Saudi Vision 2030 in April 2016, the Kingdom has embarked on its most significant economic shift in decades. The transformation has extended far beyond fiscal adjustments or limited diversification programs, evolving instead into a broad structural reform aimed at reducing reliance on oil and building a more diverse and dynamic economy.

Economic indicators suggest the strategy is gaining traction. Saudi Arabia’s gross domestic product (GDP) rose from about SAR 2.6 trillion in 2016 to nearly SAR 4.7 trillion in recent years, roughly $1.3 trillion, according to the latest official figures. That represents an average cumulative annual growth rate of about 8 percent, placing the Kingdom among the fastest-growing major economies globally during this period.

The shift reflects Vision 2030’s broader strategy to expand non-oil industries and widen the country’s production base beyond hydrocarbons.

 

Faisal Al-Fadhel, a legal expert in economic legislation and a member of the board of trustees of the Riyadh Economic Forum, said the reforms launched under Crown Prince Mohammed bin Salman have introduced a more diversified and sustainable economic model.

“Saudi Arabia has moved toward reducing its dependence on oil while expanding promising sectors such as tourism, technology, logistics and advanced industries,” Al-Fadhel told Asharq Al-Awsat. “This approach enhances the resilience of the national economy and increases the attractiveness of the Saudi market for both domestic and foreign investors.”

Recent economic indicators support that assessment. Non-oil activities have recorded strong growth, the private sector’s contribution to GDP has expanded, and foreign direct investment inflows have increased. At the same time, Saudi Arabia has improved its standing in global competitiveness indicators, reinforcing its ambitions to become a regional hub for business and investment.

Al-Fadhel noted that the transformation has also been supported by a broad legislative reform agenda designed to modernize the regulatory environment. Key economic and commercial laws — including the Companies Law, Investment Law, and Bankruptcy Law — have been updated, alongside regulations related to corporate governance, investor protection and competition. The reforms aim to improve transparency, regulatory certainty and the efficiency of the investment environment.

Non-Oil Sectors Lead Growth

One of the most visible outcomes of the economic shift is the rising contribution of non-oil sectors, which now account for 56 percent of GDP. Data show that non-oil activities were the primary driver of real economic growth in 2025.

Saudi Arabia ended 2025 with its strongest growth in two years, with GDP expanding 4.5 percent, according to estimates by the General Authority for Statistics (GASTAT). The economy grew 5 percent in the fourth quarter, with all major sectors contributing to the expansion compared with 2024.

Labor Market Changes

The Saudi labor market has also seen notable shifts. Unemployment among Saudi nationals has declined, while female participation in the workforce has reached record levels following a series of labor and regulatory reforms.

More than 2.48 million Saudis have joined the private sector in recent years, reflecting the impact of job localization policies. Economic transformation programs have also generated roughly 800,000 new jobs, with strong growth in engineering professions.

Employment opportunities have expanded particularly in tourism, supported by major entertainment and tourism projects, as well as in the pharmaceutical and medical manufacturing industries, where job numbers have doubled.

Investment at the Center

Investment has become a central pillar of the Kingdom’s economic strategy. Crown Prince Mohammed bin Salman has positioned both domestic and foreign investment as key drivers of growth and diversification.

The government established the Ministry of Investment and launched the National Investment Strategy as a comprehensive framework to boost capital formation. Total investment — measured by fixed capital formation — has risen from about SAR 672 billion in 2017 to roughly SAR 1.44 trillion by the end of 2024, more than doubling in less than a decade.

Al-Fadhel emphasized that the private sector is a critical partner in achieving Vision 2030 goals through expanded investment, technological adoption, innovation, and entrepreneurship.

Public Investment Fund Expands Role

The Public Investment Fund (PIF) has emerged as a central instrument of the transformation. With assets estimated at SAR 3.47 trillion, it has become one of the world’s largest sovereign wealth funds.

PIF is leading major investments in tourism, renewable energy, industry, technology and entertainment while launching large-scale development projects designed to create new industries and strengthen Saudi Arabia’s position as a global economic hub.