Itochu Research InstitutePrivate± Mixed
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Japan posts 1.1 trillion yen trade deficit in August as US crude oil imports surge more than 11-fold
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Japan's Ministry of Finance said in a preliminary report on September 16 that Japan ran a trade deficit of 1.1 trillion yen, or 7.1 billion dollars, in August, its fourth consecutive monthly deficit, driven in part by soaring crude oil prices amid tensions in the Middle East. The report said August exports rose 19.3 percent to 10.05 trillion yen, supported by strong semiconductor and automobile shipments, while August imports jumped 28 percent from a year earlier to 11.15 trillion yen, reflecting an increase of more than 11-fold in the value of crude oil imports from the United States. Japan, which relies heavily on crude oil imports from the Middle East, has stepped up efforts to secure fuel from other sources, including the United States, after shipping through the Strait of Hormuz was disrupted following the US and Israeli strikes on Iran in late February. An analyst at Itochu Research Institute said the surge in crude oil prices pushed up Japan's import costs, which is why the trade deficit widened in August, noting that crude oil prices have now topped 100 dollars a barrel, a factor that could keep Japan in deficit and make it difficult for the country to return to a trade surplus.