Iran-US War: Japan Begins Release of Strategic Oil Reserves 

The government of Japan has begun releasing part of its strategic oil reserves following the International Energy Agency’s decision to deploy emergency stockpiles to stabilize global oil prices amid the ongoing war in the Middle East.

Japanese authorities confirmed the move on Monday as part of a coordinated international response to cushion the surge in crude oil prices triggered by the conflict.

Government spokesperson Minoru Kihara said Japan would initially release 15 days’ worth of petroleum reserves held by the private sector.

The decision follows an earlier agreement by IEA member states on March 11 to collectively draw down oil stockpiles in response to rising energy prices driven by the Middle East conflict.

In a notice published in the government’s official gazette, authorities said the national oil reserve level “is being lowered,” a move that requires reserve managers to release part of their stockpiles to meet the new standard.

The International Energy Agency had earlier indicated that the release of oil reserves would begin in Asia and Oceania before expanding to other regions.

271.7 million barrels 

According to the agency, member countries collectively plan to release 271.7 million barrels of government-managed oil reserves worldwide as part of the coordinated effort.

The IEA said individual implementation plans submitted by member states show that reserves in Asia and Oceania would be made available immediately. At the same time, supplies from countries in the Americas and Europe are expected to be released starting in late March.

Energy analysts say the coordinated release is designed to stabilize global oil markets and prevent further price spikes that could worsen inflation and economic pressure in energy-dependent economies.

Japan is particularly vulnerable to supply disruptions because it imports about 95 per cent of its crude oil from the Middle East, making the conflict a major concern for its energy security.

Background

Japan maintains one of the largest strategic petroleum reserves in the world. As of December, the country’s total reserves stood at more than 400 million barrels, equivalent to about 254 days of domestic oil consumption.

Japan’s Minister of Economy, Trade and Industry, Ryosei Akazawa, had earlier indicated that privately held petroleum reserves would be released before tapping into government-controlled stockpiles.

Authorities have also signaled that the country could release up to one month’s worth of national reserves if necessary to stabilize the market.