CoinWorld News, Japan's government released data on Thursday showing that due to disruptions in Middle Eastern supplies, the production of chemical and fuel products declined, leading to a 0.5% month-on-month decrease in Japan's industrial output in March. This marks the second consecutive month of decline and is below market expectations of a 1.1% increase. The main reason for this decline is products derived from oil, with polyethylene production down 27% and polypropylene production down 15%. However, Japan's Ministry of Economy, Trade and Industry stated that inventories of these intermediate chemical products can still cover 1.8 months of demand, thus minimizing the impact of this event on downstream shipments. Additionally, fuel production within Japan generally decreased in March, with gasoline production down 7.3% and diesel production down 14.3%. Japan relies on Middle Eastern imports for about 95% of its crude oil, mainly transported through the Strait of Hormuz.