Japan is releasing oil from its reserves to help with the oil supply and make the petroleum market more stable. This is happening because of the conflict between the United States, Israel and Iran which is affecting the energy supplies in the Middle East.
Japan has not done this since 2022, when it worked with the International Energy Agency after Russia invaded Ukraine. At first Japan will release oil that’s equal to 15 days of the reserves that private companies have. Then the government will release oil from the state reserves, which is equal to one months worth. Know More
Chief Cabinet Secretary Minoru Kihara said Japan is doing this because it thinks its crude oil imports will decrease significantly from March. This is mainly because the Strait of Hormuz has closed, disrupting a major route used by many oil tankers. He also said the government will make sure the released oil gets to the market smoothly and Japan will keep working with countries to keep the energy supply stable.
The International Energy Agency said its 32 member countries, including Japan will soon release oil together. The agency plans to make 400 million barrels of oil to help with the supply disruptions caused by the conflict in the Middle East.
Oil prices are already rising because people are worried the conflict will last a time. In New York the price of West Texas Intermediate crude oil briefly went above $100 per barrel on Sunday. Read More
To help with the release the Japanese government will temporarily change the rules for refiners and trading companies. They will not have to keep much oil in reserve so they can use some of it to increase the supply in the market.
Week Prime Minister Sanae Takaichi said Japan will release about 80 million barrels of oil from its government reserves. This would be the release in Japans history and it is equal to about 45 days of domestic oil consumption.
As of the end of 2025 Japan had around 470 million barrels of oil in reserve. This is enough to cover 254 days of domestic consumption. The government has some of this oil private companies have some. Some is stored with oil-producing countries.
This is the time Japan is using its strategic oil reserves since the system started in the 1970s. Japan is particularly vulnerable to disruptions, in the Strait of Hormuz because it imports most of its oil from the Middle East.
