Global Tensions Lift Prices as Japan Boosts Runs, BP Expands in Uzbekistan

Global crude oil prices rose sharply this week amid fears of prolonged supply disruptions in the Persian Gulf, according to Rigzone. The ongoing tensions continue to underpin market volatility, a key factor for Bakken producers who price their output against international benchmarks.

Meanwhile, Japan's refinery utilization is rebounding as strategic stockpile releases and alternative crude supplies ease a recent supply crunch, OilPrice.com reported. Data from the Petroleum Association of Japan (PAJ) showed the average utilization rate hit 73.3% for the week ending May 9, up from rates in the 60% range seen in April. Japan is releasing 80 million barrels from its national reserves as part of an International Energy Agency-coordinated 400-million-barrel release.

This strategic release, Japan's largest ever, is helping refiners increase throughput alongside rare cargoes from producers outside the Middle East, such as Azerbaijan and Latin America. Japan had previously relied on the Middle East for up to 95% of its oil imports, with about 70% of that supply transiting the Strait of Hormuz. Major Japanese refiners Cosmo Energy Holdings and Idemitsu Kosan are aiming for average utilization rates above 90% for the fiscal year ending March 2027.

In upstream news, BP has entered six exploration blocks in Uzbekistan under the North Ustyurt production sharing contract, Rigzone reported. This marks BP's first project in the Central Asian country, highlighting continued international exploration and production investment outside traditional basins.

For Bakken operators and royalty owners, these global developments underscore the interconnected nature of the oil market. Price support from geopolitical risk in the Persian Gulf directly benefits Williston Basin economics. Furthermore, Japan's efforts to diversify its crude sources away from the Middle East and BP's expansion into new frontiers reflect a broader industry reassessment of supply chains and investment portfolios, which can influence long-term global crude flow patterns and competition.