Taipei [Taiwan], April 23 (ANI): Taiwan has significantly increased its reliance on the United States for crude oil imports, which now account for about 60 per cent of total supply. Economic Affairs Minister Kung Ming-hsin confirmed the development on Wednesday, noting a strategic pivot in the nation's energy procurement, according to a report by Focus Taiwan.

The ministry's 2024 report previously indicated that approximately 30 per cent of Taiwan's crude oil imports came from the US, while the majority of the remainder was sourced from the Middle East.

Minister Kung, during a testimony before a legislative committee, addressed the current state of national energy security. He stated that the procurement and transportation of crude oil remain stable despite the ongoing geopolitical tensions in the Middle East.

The report noted that the minister explained that the government and private sectors have taken proactive measures to ensure a consistent flow of energy resources to the island. He said four oil tankers are expected to arrive by the end of April, followed by another four to five vessels in May.

The minister highlighted the logistical adjustments made by major energy players to navigate regional instability. He noted that state-owned CPC Corp., Taiwan and Formosa Petrochemical Corp. have adjusted shipping routes, with most cargoes now avoiding the Persian Gulf and instead transiting through the Red Sea and other export channels. These adjustments are intended to mitigate risks associated with volatile shipping lanes while maintaining the delivery schedule for essential fuel supplies.

Taiwan currently maintains crude oil reserves equivalent to about 140 days of consumption, the minister added.

Addressing the economic impact of global market fluctuations, Kung shared projections regarding energy costs. He observed that while regional conflicts often drive volatility, the current market shows signs of relative containment.

The minister said that international oil prices have recently hovered around USD 90 per barrel and are unlikely to exceed USD 100 if regional tensions ease.

The report also highlighted specific details the minister shared regarding an upcoming major delivery that will bolster domestic stocks in the coming weeks. A very large crude carrier is currently making its way toward the island to support industrial and consumer needs.

Kung also said a very large crude carrier carrying about 2 million barrels of oil is en route to Mailiao Port in central Taiwan, which could meet domestic demand for more than half a month once it arrives in May. (ANI)