Japan to deploy 20 days of oil reserves starting May 1

Japan will begin releasing part of its national oil reserves from May 1, tapping stockpiles equivalent to roughly 20 days of supply, as the ongoing Middle East crisis continues to disrupt crude flows through the Strait of Hormuz, the Economy, Trade and Industry Ministry said on April 24.

In a statement, the ministry said Tokyo is working to secure crude oil through routes that bypass the Strait of Hormuz, a key global chokepoint increasingly affected by regional instability. It added that Japan expects to obtain more than half of its crude imports from alternative sources by May, compared with levels recorded last year.

Officials said that progress in diversifying procurement routes will allow the country to maintain oil supplies beyond the end of the year while limiting the scale of stockpile releases. “As a result of the progress in alternative procurement, we are able to secure the supply of oil beyond the end of the year while keeping the amount of stockpile release to a minimum,” the ministry said.

The next batch of crude will be released under Article 31 of Japan’s Petroleum Stockpiling Law to ensure stable energy supplies. The total volume is estimated at approximately 5.8 million kiloliters, with a value of around 540 billion yen, or about $3.38 billion.

Japan, one of the world’s largest crude importers, remains heavily dependent on energy supplies from the Middle East, making disruptions around the Strait of Hormuz a major concern for its energy security.

Earlier reports in Japanese media indicated that, despite external risks, the country is capable of meeting domestic oil demand at least until the end of 2026 by diversifying supply sources and utilising reserves. Alternative supply routes include shipments from the United Arab Emirates via the port of Fujairah, from Saudi Arabia via Yanbu, as well as a potential increase in imports from the US and Azerbaijan.

In March, Japan began selling part of its strategic reserves—equivalent to about 45 days of consumption—at prices below market levels that had risen following the escalation of tensions in the Middle East.

According to government data, Japan’s total oil reserves, including both public and private stockpiles, amount to approximately 470 million barrels, or about 254 days of domestic consumption.

By Tamilla Hasanova