Japan Taps Strategic Oil Reserves to Stabilize Petroleum Amid Mideast War
Initially, the country is making available 15 days’ worth of reserves held by the private sector, with a month’s supply from state-controlled stockpiles set to follow. This represents Japan’s first use of its fuel reserves since the Russia-Ukraine conflict began in 2022.
Chief Cabinet Secretary Minoru Kihara noted that the decision comes as Japan anticipates a sharp decline in crude oil imports from late March onward due to the effective closure of the Strait of Hormuz, a key global shipping route for oil. “We plan to make efforts so that (the released oil) will circulate in the market smoothly,” he said.
Kihara added that the government will “continue to take every possible step to ensure the stable supply of energy, through international coordination and without ruling out any options.”
Japan relies on the Middle East for more than 90% of its crude oil, leaving it highly exposed to disruptions caused by the Strait of Hormuz’s closure. In response, Tokyo will reduce the mandatory 70-day reserve requirement for oil refiners and trading firms under its stockpiling law to 55 days’ worth.
Last week, Prime Minister Sanae Takaichi outlined plans to release roughly 80 million barrels of oil—the largest quantity ever—equivalent to 45 days of domestic consumption. By the end of 2025, Japan’s reserves totaled approximately 470 million barrels, enough to cover 254 days of domestic demand.
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