Japan may use part of national oil stockpile amid Iran war supply crisis, Kyodo reports
FILE PHOTO: An aerial view shows an oil factory of Idemitsu Kosan Co. in Ichihara, east of Tokyo, Japan November 12, 2021, in this photo taken by Kyodo. Mandatory credit Kyodo/via REUTERS/File Photo
TOKYO, March 6 : The Japanese government is considering using part of its national oil reserves amid the ongoing Iran crisis that has disrupted global energy supplies, Kyodo news agency reported on Friday citing sources, and may do so in coordination with other countries or even on its own.
Japan relies on the Middle East for around 95 per cent of its oil supplies with around 70 per cent coming via the Strait of Hormuz, which ​is effectively closed due to the Iran war.
Tokyo holds emergency national reserves equivalent to around 146 days of consumption, while it also has private-sector stockpiles and joint stockpiles with oil-producing countries.
Overall, Japan's oil stockpiles are equal to 254 days of imports and are some of the world's largest.
Officials earlier this week said Japan had no current plans to release its stockpiles.
Japan's industry ministry was not immediately available for comment on Friday.
Kyodo said the government plans to monitor the situation and consider whether or not to release part of its national reserves stored across the country to domestic companies to ensure stable supply.
The government will study whether to do so - in coordination with other countries or on its own - and look at how much of the stockpile is to be offered, the Kyodo report said, to offset any shortages because of the Strait of Hormuz blockage.
After Russia's invasion of Ukraine in 2022, Japan released some of its oil reserves in coordination with the International Energy Agency and other countries.
