Japan begins new phase of strategic oil reserve release

Japan has begun a second phase of releasing crude oil from its strategic reserves on May 1 in an effort to stabilise domestic supply amid disruptions caused by the conflict in the Middle East.

The additional release is equivalent to roughly 20 days of national consumption, Caliber.Az reports, citing Kyodo.

In mid-March, authorities had already brought about 50 days’ worth of reserves to market, drawing on both state stockpiles and contributions from the private sector and Gulf countries.

Under the new phase, Japan plans to release around 5.8 million kilolitres of oil worth approximately 540 billion yen (about $3.45 billion).

Supplies will be drawn from ten storage facilities across the country and delivered to four major oil companies.

Japan remains one of the world’s most import-dependent energy economies, with more than 90% of its crude oil coming from the Middle East, much of it transported via the Strait of Hormuz.

Disruptions in the waterway due to regional tensions have prompted Tokyo to rely more heavily on reserves while accelerating efforts to diversify supply sources and routes.

By Bakhtiyar Abbasov