Oil importers learning to live with longer trade routes
ENERGY trade routes that optimise distance and costs may no longer be suitable for the fractured and fractious modern world, especially for major importers.
Oil importers are learning to adapt to longer trade routes as geopolitical tensions, particularly involving Iran, force them to diversify their supply sources. This shift away from concentrated energy corridors to a more dispersed network of supply lines is driven by a desire to reduce exposure to geopolitical shocks and enhance energy security.
Japan, which previously sourced over 90% of its crude from Middle Eastern suppliers, has seen a significant drop in Gulf oil shipments since late February. As a result, Japan has increased its crude oil imports from North America, with total purchases from the US nearly quadrupling from March to June 2026. However, this new route is associated with longer journey times, higher shipping costs, and a different delivery schedule.
South Korea and India have also revamped their crude origin patterns, increasing flows from the Americas and Africa as Middle Eastern supplies dwindle. China, the world's top crude oil buyer, has relied on strategic oil reserves to mitigate the impact of the Iran conflict. US crude oil exports reached a record 61.6 million metric tonnes in the second quarter of 2026, up 43% year-on-year.
Brazil, Argentina, Guyana, and Russia also posted record shipments, providing new suppliers to major oil importers. While the new energy trade map is less efficient and more expensive, importers see value in having a variety of vendors for supply-chain resilience.
Written by urgent.news from New Straits Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
