Japan Eyes Release Of Oil Reserves To Stabilize Prices

Japan is considering releasing oil from its reserves along with the United States and other countries to help curb rising crude oil prices, Prime Minister Fumio Kishida said.

Photo Insert: An oil refinery in Japan set against a Mount Fuji backdrop

Should the decision be made, it will be the first time Japan has tapped its oil reserves to lower prices, with government officials mainly looking to utilize excess stockpiles instead of revising the relevant law.

“We are considering what we can do," Kishida told reporters in the western Japan city of Matsuyama when asked about the possibility, as surging prices of gasoline and other fuel products are squeezing households and companies that have already been hit hard by the coronavirus pandemic.

There are, however, voices in the Japanese government cautioning against releasing oil reserves at times other than supply shortages, officials said. Past decisions to tap reserves were made to address supply concerns following natural disasters and overseas political turmoil.

So far, Japan has made releases five times, including in the wake of the Gulf War and the March 2011 earthquake and tsunami in northeastern Japan.

Under the Oil Stockpiling Law, the release is allowed only under such circumstances, and officials believe revising it to lower prices would take time and be unrealistic. But the amounts exceeding Japan's current reserve targets that the government may utilize would not be restricted by the law, they said.

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