Japan plans to start releasing oil from its stockpiles on Monday to soften the shock from the U.S.-“Israeli” war on Iran, a stark reminder of the oil crisis half a century ago that prompted Tokyo to create reserves.
As gasoline prices across Japan started to rise with the war disrupting supplies from the Gulf’s Strait of Hormuz, Tokyo pledged to release a record 80 million barrels of oil, about 45 days of supply for the resource-poor nation.
The government has asked Japan’s refiners to use the released crude, which will reduce the national reserves by 17%, to secure domestic supplies. It is not known how much of the oil will go to a global release of 400 million barrels being coordinated by the International Energy Agency to address the war’s supply shock and price volatility.
Japan started its national oil reserve system in 1978, several years after the Arab oil embargo. The Group of Seven nation, reliant on the Middle East for around 90% of its oil, now stockpiles 254 days of consumption.
