Japan to Tap Oil Reserves Amid Global Supply Concerns

Japan is set to release 15 days of private-sector oil reserves and a month of state oil reserves to stabilize the global energy market. This move, led by Prime Minister Sanae Takaichi, aligns with G7 and IEA efforts amid rising gasoline prices and geopolitical tensions affecting supply chains.

Japan is preparing to release 15 days' worth of private-sector oil reserves and one month's worth of state oil reserves, Prime Minister Sanae Takaichi announced Wednesday. The proactive move comes before any formal action by the International Energy Agency to help alleviate global energy market tensions.

This decision targets mitigating disruption to gasoline and petroleum supplies, aligning with G7 and IEA recommendations. Starting March 16, Japan will deploy these reserves, a crucial step for a country nearly entirely dependent on Middle Eastern oil.

Recent government data revealed increased retail gasoline prices and reduced refinery output, coinciding with heightened geopolitical unrest. Japan's emergency oil reserves cover 254 days of consumption, including 146 days of national stockpiles, 101 days of private-sector reserves, and 7 days in joint stockpiles with oil-producing nations.