Japan to Additionally Release State Oil Reserves

Tokyo, April 9 (Jiji Press)–The Japanese government plans to begin another round of state oil reserve releases amid lingering uncertainty over the Middle East, it was learned Thursday. The government determined that an additional release is necessary to ensure stable oil supplies as the situation remains precarious although the United States and Iran have agreed on a two-week ceasefire. It is considering releasing oil equivalent to 20 days of domestic consumption, down from 30 days in the previous release of state reserves, as the country has made progress in finding alternative oil supply routes following the escalation of the Middle East tensions. A senior industry ministry official said the government is considering options of releasing oil equivalent to 20, 15 and 10 days of consumption. The government is also expected to keep beyond Wednesday the mandatory amount of private-sector oil reserves at 55 days’ worth, after lowering it from 70 days. Japan began releasing 15 days’ worth of private-sector oil reserves on March 16, in anticipation of a suspension in crude oil imports from later that month due to the de facto closure of the Strait of Hormuz, a key oil transport waterway. On March 26, it started to release 30 days’ worth of state reserves and about six days’ worth of reserves held in Japan jointly by oil-producing countries. At the same time, Tokyo stepped up efforts to import oil from the Middle East using pipelines to bypass the Strait of Hormuz and from the United States. As a result, oil to be procured from alternative sources in May is expected to make up more than 50 pct of the year-before oil consumption. END [Copyright The Jiji Press, Ltd.]