Japan is preparing to begin releasing crude oil from its strategic reserves as early as Monday in response to disruptions in global energy supplies caused by the war involving Iran, according to Reuters.
The government has announced plans to make a record 80 million barrels of crude available to domestic refiners in an effort to counter rising fuel costs and stabilise supplies. The release represents roughly 45 days of oil consumption for the resource-dependent nation and will reduce Japan’s overall reserves by about 17%.
Officials say refiners will be encouraged to draw on the crude to maintain stable supplies within the country as petrol prices climb. Part of the oil may also contribute to a broader emergency release coordinated by the International Energy Agency, which is organising a global effort to inject up to 400 million barrels into the market to mitigate supply disruptions and volatility triggered by the conflict.
Japan established its oil reserve system in 1978 in the aftermath of the 1973 oil crisis, when the Arab oil embargo exposed the country’s heavy reliance on imported energy. Today the Group of Seven member holds reserves equivalent to roughly 254 days of domestic demand and depends on the Middle East for about 90% of its oil supplies.
According to the Ministry of Economy, Trade and Industry, the initial phase of the release will involve tapping oil held by private companies, equivalent to around 15 days of national demand, beginning Monday. A further release of state-controlled reserves, estimated at roughly a month’s supply, is scheduled to begin later in the month.
The ministry noted that an additional 12 million barrels stored in Japan by Gulf producers including Saudi Arabia, United Arab Emirates and Kuwait could also be made available if necessary.
As companies prepare to access the emergency reserves, Economy Minister Ryosei Akazawa said the government is simultaneously seeking alternative supply routes that bypass the Strait of Hormuz. Potential sources include producers in United States, Central Asia, South America and other Gulf states.
Japan currently imports about 4% of its crude oil from the United States after largely halting purchases from Russia since 2022, when Tokyo last resorted to releasing part of its reserves.
