Japan Releases Record 80 Million Barrels from Reserves

Japan began releasing oil from its strategic reserves on Monday, March 16, in response to severe supply disruptions in the Strait of Hormuz caused by the ongoing war between the United States, Israel, and Iran. The move, announced by Prime Minister Sanae Takaichi last week, aims to stabilize domestic fuel supplies and prices in the resource-poor nation, which relies on imported oil for about 90 percent of its energy needs.

The government plans to release a record 80 million barrels, equivalent to roughly 45 days of national consumption. This includes an initial drawdown of 26.5 million barrels from private-sector reserves, covering about 15 days of supply, followed by approximately 30 days worth from state stockpiles later this month. Under Japan's Oil Stockpiling Law, private companies such as refiners and wholesalers are required to maintain reserves equal to 70 days of consumption, but authorities temporarily reduced this obligation to 55 days through April 15 to free up the oil for market distribution. The released volumes consist mainly of refined products like gasoline and kerosene from private holdings, with crude oil from national reserves to be processed by domestic...