Japan Praises ‘Secure’ Saudi Oil as Crude Nears Seven-Year High

(Bloomberg) -- Japan made a public declaration of support for Saudi Arabia as a “secure” oil supplier, as crude nears a seven-year high and the Asian nation's gasoline costs surge.

Prime Minister Fumio Kishida expressed his “appreciation for the secure supply of oil from Saudi Arabia to Japan” in a phone call with Saudi Crown Prince Mohammed bin Salman, according to a statement Thursday from the Japanese government.

International oil prices soared to a seven-year high above $90 a barrel last month, and could rise further. The rally has been underpinned by rising demand, low stockpiles, interruptions to supply and geopolitical tensions. That's helped push Japan's gasoline prices to the highest in over a decade, just as the nation is trying to bolster its virus-hit economy.

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Saudi Arabia, the world's largest oil exporter, sends more than 60% of its crude exports to Asia, with China, Japan, South Korea and India being the biggest buyers. In the statement, Kishida said Japan seeks to cooperate with the kingdom “as it plays a leading role in the stabilization of the international oil market,” adding that Tokyo will support Riyadh's efforts toward the diversification of its industry as well as its domestic economic and social reforms.

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The Organization of Petroleum Exporting Countries and its allies agreed to revive more halted oil production in March at the group's latest meeting on Wednesday, yet members are struggling to fulfill their supply pledges because of a lack of spare capacity. With OPEC's production buffer now largely confined to the kingdom, traders are growing anxious over what's available to cover any supply disruptions.