TOKYO:  Japan’s crude oil import price hit a record high in yen terms in May, surpassing ​April levels, Ministry of Finance data showed on Wednesday, driven by a surge in crude prices resulting from supply disruptions caused by the closure of the Strait of Hormuz.

The customs-cleared import price rose to 114,076 yen ($712) per ‌kilolitre, the ‌highest since comparable records ​began in ‌1979, ⁠exceeding ​the previous ⁠record of 101,389 yen in April.

In dollar terms, the price stood at $114.58 per barrel, the 17th highest on record.

Japan’s crude import price, known as the Japan Crude Cocktail (JCC), is based ⁠on customs-cleared CIF (cost, insurance and freight) ‌prices and reflects ‌global crude trends with ​a roughly one-month lag ‌due to shipping times.

Higher JCC ‌prices raise the cost of importing crude and liquefied natural gas, a key fuel for thermal power generation, and feed directly into higher ‌electricity prices.

Crude oil import volumes fell 57.3% from a ⁠year ⁠earlier in May, following a 64% plunge in April, the steepest drop since 1980.

By region, imports from the Middle East tumbled 61.9% to 3.967 million kilolitres, while those from the United States rose 24% to 576,000 kilolitres.

In value terms, crude imports declined 28.5%.

Before disruptions to the Strait, Japan sourced ​about 95% of ​its crude imports from the Middle East.

Reuters