Japan weighs additional release of 20 days of oil from reserves

Japan is considering an additional release of oil reserves equivalent to 20 days of domestic consumption in May, Kyodo News reported Thursday citing a source close to the matter.

The move is being weighed as uncertainty persists over safe passage through the Strait of Hormuz despite a conditional ceasefire between the US and Iran.

Uncertainty remains over whether the strait will fully reopen or operate under prewar conditions, particularly as Israel continues strikes in Lebanon, violating preconditions for a permanent ceasefire.

Japan's Industry Ministry is assessing the extra release as the government seeks to secure stable energy supplies.

Tokyo began its largest-ever stockpile release in mid-March and plans to supply around 80 million barrels of oil to the market, equivalent to about 50 days of domestic consumption, from reserves held by the state, the private sector and oil-producing Gulf countries.

Of that total, state-held reserves covering 30 days of consumption are due to be released from 11 bases nationwide by the end of April.

Japan, which imports nearly all of its crude oil, sources more than 90% of its imports from the Middle East, leaving it highly exposed to disruptions in Gulf energy shipments.

Prime Minister Sanae Takaichi last month voiced support for a possible additional coordinated oil stockpile release by the International Energy Agency during a meeting in Tokyo with IEA Executive Director Fatih Birol.

IEA member countries also began releasing reserves in mid-March, with total coordinated volumes exceeding 400 million barrels, marking the first such joint action since 2022, following Russia's full-scale invasion of Ukraine.