Japan Is Facing A Looming Energy Crisis

An employee of Cosmo Energy Holdings' Cosmo Oil service station checks its nozzles at a branch in Tokyo, Japan, December 16, 2015. REUTERS/Yuya Shino 

 OilPrice.com: The World’s Third-Largest Economy Is Facing A Looming Energy Crisis 

Japan is facing an energy crisis that can severely hurt the world's third-largest economy as it is forced to tackle a combination of a weak local currency, the fallout from the Ukraine war, and a heatwave. 

Japan already had a significant energy import bill as it depends on foreign oil and gas for 90 percent of its needs. But as the yen fell to the lowest in 20 years, Japan's bill became even bigger, with the price rise in crude oil, which has been some 40 percent in dollar terms since the start of 2022, reaching a whopping 70 percent in yen terms. 

"A confluence of factors, including the higher fuel prices since the war and the tumbling currency, is putting a significant pressure on Japan's energy security, making this one of the most serious energy crises Japan has had," said Jane Nakano, a senior fellow at Washington-based think tank the Center for Strategic & International Studies.  

Read more ....  

Update #1: Japan is trying to avoid power blackouts during a scorching heat wave by setting ACs to 82 degrees and turning off heated toilet seats (Fortune)  

Update #2: Japan, South Korea buyers have not yet been asked to pay roubles for Russian LNG imports (Reuters)  

WNU Editor: Because Japan imports 90% off its energy needs, it needs to continue to buy Russian oil and natural gas. Japan is also the country that proposed to the G7 to cap Russian oil export prices at half the current rate. 

Update #3: Japan is not the only Asian facing an energy crisis .... Factbox: Asia-Pacific economies face escalating energy crisis (A&P Global).