• 4 minutes Energy Armageddon
  • 6 minutes "How to Calculate Your Individual ESG Score to ensure that your Digital ID 'benefits' and money are accessible"
  • 12 minutes "Europe’s Energy Crisis Has Ended Its Era Of Abundance" by Irina Slav
  • 1 day Is Europe heading for winter of discontent with extensive gas shortages?
  • 3 hours "False Flag Planted In Nord Stream Pipeline, GFANZ, Gore, Carney, Net Zero, U.S. Banks, Fake Meat, and more" - NEWS in 28 minutes
  • 1 day ""Green" Energy Is a Scam. It Isn't MEANT to Work." - By James Corbett of The Corbett Report
  • 19 mins Wind droughts
  • 7 days Kazakhstan Is Defying Russia and Has the Support of China. China is Using Russia's Weakness to Expand Its Own Influence.
  • 12 hours "Natural Gas Price Fundamental Daily Forecast – Grinding Toward Summer Highs Despite Huge Short Interest" by James Hyerczyk & REUTERS on NatGas
  • 2 days Xi Is Set To Be Re-Elected As China’s Leader
  • 10 days Oil Prices Fall After Fed Raises Rates
  • 1 day 87,000 new IRS agents, higher taxes, and a massive green energy slush fund... "Here Are The Winners And Losers In The 'Inflation Reduction Act'"-ZeroHedge
  • 1 day Australian power prices go insane
  • 12 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 1 day Europeans and Americans are beginning to see the results of depending on renewables.
Why Oil Prices Could Continue To Fall

Why Oil Prices Could Continue To Fall

Despite the bullish news of…

Oil Markets Are Set Up For A Bull Run

Oil Markets Are Set Up For A Bull Run

Bullish catalysts are coming together…

Irina Slav

Irina Slav

Irina is a writer for Oilprice.com with over a decade of experience writing on the oil and gas industry.

More Info

Premium Content

High Energy Prices Send Japan’s Trade Deficit Soaring

  • Japan posted a record trade deficit in August due to high oil and gas prices and a sharp drop in the yen.
  • Due to a lack of local energy resources, Japan is one of the biggest importers of oil and gas in the world, both of which have seen prices soar.
  • August was the 13th month in a row that Japan imported more than it exported.

Higher energy prices coupled with a sharp drop in the value of the yen pushed Japan’s trade deficit last month to a record $19.7 billion.

August was the thirteenth month in a row that Japan has been importing more than it has been exporting. About half of the deficit came from energy imports from the Middle East, the AP reported, citing government data.

"The weaker yen is boosting (the cost of) imports at a time of surging energy prices. Energy and grain prices have shown signs of stabilizing recently, but the impact of the sharp drop in the yen will continue for a while with a lag," one analyst told Japanese daily Mainichi.

"Imports are on the rise as high raw material prices continued and supply disruptions eased, while exports are sluggish," a Japanese economist told Reuters.

"Costs will rise if imports go up without any change to the size of the global economy. It will lead to the importing of inflation," Takeshi Minami, chief economist at Norinchukin Research Institute, also said.

Japan is one of the biggest energy importers in the world because of the local scarcity of energy resources. Until recently, it was the world’s biggest LNG importer but last year surrendered the number-one spot to China.

The country is also one of the world’s biggest oil importers, with the Middle Eastern members of OPEC its most prominent suppliers. After Russia’s invasion of Ukraine, Japan began reducing its imports from Russia, previously its fifth-largest supplier. By July, Japan was importing 98 percent of its oil from members of the Gulf Cooperation Council.

Despite being a member of the G7, which recently agreed a price cap on Russian oil exports in an effort to reduce Russia’s revenues from energy exports, Japan has been exempt from the cap and continues importing oil and gas from Russia.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:

Download The Free Oilprice App Today

Back to homepage

Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News