Japanese Firms Slowly Re-enter Iraq

Japanese oil distributors are slowly resuming imports of Iraqi crude oil, attracted by the low prices. Cumulative imports from the war-torn country came to 16 million barrels as of the end of January.

But Japanese oil firms are avoiding long-term contracts and opting for spot deals via trading firms because they fear that crude oil production and shipments could be disrupted by terror attacks.

Before the 1991 Gulf War, Japanese oil distributors bought crude oil directly from Iraq, and Iraqi oil accounted for about 10 pct of the companies' total oil imports. That total is now down to 3% but is expected to grow as security and confidence increase.