According to Japanese media reports, these actions are aimed at preventing the destabilization of supplies due to the virtual blocking of the Strait of Hormuz by Tehran.
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Private and public stocks
The first step will be to make stocks available to the private sector, which will cover the country's 15-day demand. Next, state reserves will hit the market, which means a total supply of a record 80 million barrels of oil, equivalent to 45 days of domestic consumption. This is the largest intervention in the history of Japan's reserve system, surpassing even the actions taken after the tragic earthquake in 2011.
As Chief Cabinet Secretary Minoru Kihara noted, Tokyo intends to take all possible steps to ensure the stability of energy supplies. — The government will act in close international coordination, without excluding any options, he stressed. The priority, according to Kihara, is the smooth introduction of the released raw material to the market, especially in the face of the expected drop in imports at the end of March.
The seventh case in Japanese history
Japan's decision fits into the broader context of global efforts to stabilize the oil market. Tokyo was ahead of a coordinated action by the International Energy Agency (IEA), whose members pledged to release a total of about 400 million barrels of oil. This is the seventh time Japan has tapped its reserves since the 1970s, with the last time it happened in 2022 in response to Russia's invasion of Ukraine.
Japan, of which over 90 percent imported oil comes from the Middle East, and is particularly affected by the blockade of key transport routes. The actions of the authorities in Tokyo are aimed at minimizing the risk of supply interruptions and stabilizing the domestic energy market.
