TOKYO (Commodity Online): Japan is reportedly preparing to cut back on its oil imports from Iran on increasing US pressure. Japan is the third largest market for Iran oil, importing close to 313,000 barrels of oil per day (bpd) in 2011.
Japan's Yomiuri newspaper reported that Japan and the US reached an agreement last week with regard to the issue and a formal statement is expected by the end of February. The paper further adds that the two sides may settle on a 11% cut.
If Japan does decide to cut back on imports from Iran, it will have to face the prospect of reduced supplies. This at a time when Japan's oil consumption is increasing in order to compensate for the loss of nuclear energy.
But not deciding to implement the US ban will affect the country's businesses since the US can move to shut down the US operations of Japanese banks dealing with Iranian banks.
