Japan Starts Release of State Oil Reserves

The Japanese government has started releasing 30 days’ worth of state-held oil to cushion the impact on the economy as concerns over supply mount and oil prices soar amid the ongoing U.S.-Israeli war with Iran, Kyodo News reported.

Japan sources nearly all its crude oil from overseas and relies on the Middle East for more than 90% of its crude imports. (Photo: Kyodo News) 

The industry ministry announced that the government plans to sell a total of about 8.5 million kiloliters of oil from 11 storage bases across the country, following the private sector’s release of 15 days’ worth of oil stockpiles.

According to the ministry, Middle Eastern countries such as the United Arab Emirates will discharge five days’ worth of oil reserves in Japan for distribution to Japanese oil wholesalers.

The government will continue to “make all necessary diplomatic efforts in close coordination with related countries” and try to “minimize the impact on economic activities,” Prime Minister Sanae Takaichi said at the first meeting of Cabinet members tasked with addressing the Middle East crisis.

Japan sources nearly all its crude oil from overseas and relies on the Middle East for more than 90% of its crude imports, Mainichi Japan also reported.