Japan's Cosmo secures sufficient crude through October from Mideast, America

COSMO ENERGY HOLDINGS

06/08/2026 11:51

By Yuka Obayashi
TOKYO, Aug 6 (Reuters) - Japan's third-largest oil refiner, Cosmo Energy Holdings 5021.T, has secured sufficient crude oil through October from the Middle East and North and Central America, an executive said on Thursday.    
"Crude oil procurement is generally carried out up to three months in advance, and we have secured supplies through October," Senior Executive Officer Tomoki Iwai told a press conference, adding that procurement is split roughly evenly between the Middle East and North-Central America.
Japan, including Cosmo, imported about 95% of crude from the Middle East before the Iran war.
Cosmo posted an 84 billion yen ($532 million) net profit in April-June, reversing a 2 billion yen net loss a year earlier, helped by higher fuel prices after the Iran war disrupted shipping through the Strait of Hormuz. 
Iwai said the company had procured crude before prices surged for the quarter, while earnings benefited from higher petroleum product prices, particularly jet fuel.
Cosmo did not export petroleum products during the quarter as it prioritised domestic supply, but is considering resuming exports, particularly in the second half of the financial year ending March 2027, assuming the Middle East situation stabilises, Iwai said.
Cosmo's refinery run rate fell to 88.1% in April to June from 92.9% a year earlier, as it processed crude released from Japan's strategic petroleum reserve and blended lighter U.S. crude with heavier grades to replace Middle Eastern supplies. It expects the rate to recover to 93.7% for the full year, assuming the Middle East situation stabilises.
On crude procurement after the Middle East war, Iwai said Cosmo would continue to prioritise stable supplies while sourcing the most cost-competitive crude. He noted that shipments from North and Central America take more than twice as long to reach Japan as those from the Middle East, resulting in significantly higher freight costs.

($1 = 157.8600 yen)

 (Reporting by Yuka Obayashi, Editing by Louise Heavens)
 ((Yuka.Obayashi@thomsonreuters.com; +813-4520-1265;))