Japan asks IEA to prepare extra coordinated emergency oil releases
The Japanese prime minister urged the agency to stand ready for another joint reserve release as the Strait of Hormuz crisis keeps crude prices elevated.
- Japanese Prime Minister Sanae Takaichi has formally asked the International Energy Agency (IEA) to prepare for additional coordinated releases of emergency oil reserves.
- The request is a response to soaring crude oil prices and supply instability caused by Iran's blockade of the Strait of Hormuz.
- This potential action would be in addition to a record 400 million barrel release already agreed upon by IEA member countries earlier this month.
- The IEA's Executive Director acknowledged the threat to energy security and confirmed that further joint releases are possible if necessary to stabilize markets.
Japanese Prime Minister Sanae Takaichi on Wednesday (March 25) asked the International Energy Agency to make preparations for additional coordinated releases of oil reserves to deal with soaring crude oil prices.
Takaichi requested that IEA Executive Director Fatih Birol, in their meeting at the prime minister's office in Tokyo, stabilise energy supplies and prices as Iran's effective blockade of the Strait of Hormuz, a key oil transport chokepoint, continues amid its conflict with the U.S.-Israeli side.
The Japanese leader's call for the additional measure came after all 32 member countries of the IEA agreed earlier this month on the coordinated release of a record 400 million barrels of oil reserves. The release of the oil has already started.
"Asian countries are struggling significantly," Takaichi told Birol, calling on the IEA to take account of the region's energy security. "I want to request (the IEA) to start preparations for additional coordinated releases in case (the Middle East crisis) drags on."
Birol responded that the world is in a difficult situation and faces a grave threat to energy security, adding that it is possible for the IEA to consider additional joint releases of oil reserves if necessary to help stabilise energy markets.
With the IEA aiming to diversify supply chains for critical minerals, Takaichi expressed hope for the role the organisation will play in the issue. Takaichi and Birol affirmed close cooperation between Japan and the IEA.
[Copyright The Jiji Press, Ltd.]
