Japan releases additional oil reserves amid Hormuz blockade
Japan began a second state oil reserve drawdown on Friday, aiming to protect supply as the Hormuz blockade raises crude procurement concerns.
- Japan has initiated a second release of its state oil reserves in response to the blockade of the Strait of Hormuz.
- This new release is equivalent to approximately 20 days of domestic demand, or 5.8 million kilolitres.
- This action follows a previous release in March and is part of a broader strategy that also includes using private sector reserves and crude oil from the United States.
- With these combined measures, the country expects to have sufficient oil supplies to cover demand until the beginning of next year.
Japan on Friday (May 1) began releasing a further tranche of state oil reserves equal to roughly 20 days of domestic demand, as concerns over crude procurement grew following the de facto blockade of the Strait of Hormuz.
The oil will be drawn from 10 stockpiling sites nationwide. Combined with the first release launched in March, which covered around 30 days of consumption, the government hopes the measure will help keep oil supplies stable.
The second release had originally been scheduled for Friday, but the government said in late April that it would be delayed by one day to Saturday. However, the release began on Friday as first planned. A government spokesperson blamed the confusion on poor information-sharing by the Agency for Natural Resources and Energy, saying: “We'll try to work on better communication.”
Under the second round, 5.8 million kilolitres of stockpiled oil will be released. Four wholesalers are set to buy the crude for about 540 billion yen.
Japan also plans to tap oil reserves held by the private sector and make use of crude secured from the United States. With these steps, the country expects to have enough oil to cover demand until the beginning of next year.
[Copyright The Jiji Press, Ltd.]
