Japan to release an additional 20 days' worth of oil reserves starting May 1 — Kyodo
On Friday, the Japanese government officially announced its decision to begin releasing additional oil from national reserves starting May 1.
Kyodo News reports this.
This move is driven by growing uncertainty regarding the stability of shipping through the Strait of Hormuz, which is critical to the global energy sector.
According to the plan of Japan’s Ministry of Economy, Trade and Industry, approximately 5.8 million kiloliters of crude oil will be released to the market.
The total value of this volume, equivalent to the country’s 20-day supply, is about 540 billion yen, or $3.4 billion.
The strategic reserves will be supplied from ten state-owned storage facilities located in various parts of the country.
The recipients of the oil will be four leading wholesale oil traders: Eneos Corp., Idemitsu Kosan Co., Cosmo Energy Holdings Co., and Taiyo Oil Co.
For Japan, the security of maritime routes is vital, as the country faces a severe shortage of its own energy resources.
Currently, the country imports over 90% of its oil from the Middle East, with the vast majority of these shipments passing through the Strait of Hormuz.
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