Japan starts oil reserve release to mitigate supply risks
The Japanese government began releasing oil from its reserves on Monday to address potential supply disruptions caused by Iran’s effective closure of the Strait of Hormuz following U.S.-Israeli strikes on Iran, Jiji Press reports.
In the first move of this kind in four years, Japan plans to release oil from private-sector reserves equal to about 15 days of domestic consumption starting Monday. The government is also considering releasing an additional 30 days’ worth of oil from its state reserves as early as late March.
Officials expect the number of oil tankers arriving in Japan to drop significantly by around Friday due to the closure of the key shipping route. The government hopes the reserve release will help prevent shortages of oil and related products.
According to an announcement in the official gazette on Monday, authorities also reduced the amount of oil reserves that refiners and other companies are required to hold - from 70 days’ worth of supply to 55 days.
As of the end of last year, private-sector oil reserves in Japan totaled the equivalent of 101 days of domestic consumption, stored mainly in tanks at oil refineries across the country.
Earlier, Qazinform reported Trump urges nations to send ships to keep the Hormuz Strait 'open and safe.'
