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▼ Japan Mulls Extra 20 Days Worth Of Oil Release With Hormuz Passage Unclear
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Japan is considering an additional release of its oil reserves providing 20 days of domestic consumption in May, as uncertainties remain over safe passage through the Strait of Hormuz even with the U.S.-Iran ceasefire, a source close to the matter said Thursday.
The United States and Iran agreed to a conditional two-week ceasefire on Tuesday, shortly before the expiry of U.S. President Donald Trump's self-imposed deadline for Tehran to reopen the Strait of Hormuz or face the destruction of its critical infrastructure.
But it remains uncertain whether the strait will be reopened or operate under the same conditions as it was before the war, with Israel continuing to attack the Iran-affiliated Hezbollah militant group in Lebanon.
The industry ministry is weighing up the extra release on concerns that the effective closure of the strait may continue.
The government started its largest-ever discharge of oil stockpiles in mid-March to ensure a stable oil supply after the U.S.-Israeli launch of attacks on Iran on Feb. 28 left the key energy shipping waterway largely closed.
The government aims to provide a total of about 80 million barrels of oil, equivalent to about 50 days' worth of consumption, to the market from oil reserves held by the state, the private sector and oil-producing Gulf countries.
Of the total, state-held oil covering 30 days is set to be released from 11 bases nationwide by the end of April.
Resource-poor Japan relies on imports for almost all of its crude oil, with over 90 percent of it coming from the Middle East.
Japanese Prime Minister Sanae Takaichi expressed her support for a possible additional joint oil stockpile release by the 32-member International Energy Agency when she met with IEA Executive Director Fatih Birol in Tokyo last month.
IEA countries also started their oil reserve releases in mid-March, totaling over 400 million barrels, the first such coordinated move since 2022 when Russia launched its full-scale invasion of Ukraine.
The United States and Iran agreed to a conditional two-week ceasefire on Tuesday, shortly before the expiry of U.S. President Donald Trump's self-imposed deadline for Tehran to reopen the Strait of Hormuz or face the destruction of its critical infrastructure.
But it remains uncertain whether the strait will be reopened or operate under the same conditions as it was before the war, with Israel continuing to attack the Iran-affiliated Hezbollah militant group in Lebanon.
The industry ministry is weighing up the extra release on concerns that the effective closure of the strait may continue.
The government started its largest-ever discharge of oil stockpiles in mid-March to ensure a stable oil supply after the U.S.-Israeli launch of attacks on Iran on Feb. 28 left the key energy shipping waterway largely closed.
The government aims to provide a total of about 80 million barrels of oil, equivalent to about 50 days' worth of consumption, to the market from oil reserves held by the state, the private sector and oil-producing Gulf countries.
Of the total, state-held oil covering 30 days is set to be released from 11 bases nationwide by the end of April.
Resource-poor Japan relies on imports for almost all of its crude oil, with over 90 percent of it coming from the Middle East.
Japanese Prime Minister Sanae Takaichi expressed her support for a possible additional joint oil stockpile release by the 32-member International Energy Agency when she met with IEA Executive Director Fatih Birol in Tokyo last month.
IEA countries also started their oil reserve releases in mid-March, totaling over 400 million barrels, the first such coordinated move since 2022 when Russia launched its full-scale invasion of Ukraine.
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