Japan will begin releasing portions of its state-owned strategic petroleum reserves from Thursday, Prime Minister Sanae Takaichi announced, as part of a coordinated international effort to stabilise global oil markets amid geopolitical tensions in the Middle East.
The release, scheduled to commence on March 26, aims to secure “the necessary amount for the whole of Japan,” Takaichi stated in a social media post. This action follows an earlier decision to tap private-sector stockpiles, which began on March 16 with the release of approximately 15 days’ worth of commercial reserves. The government had previously confirmed it would also release a month’s worth of its own strategic reserves.
Additionally, Japan expects to start drawing from joint oil reserves held on its territory by producing nations by the end of March. These shared stockpiles are managed by Saudi Arabia, the United Arab Emirates, and Kuwait, according to the Petroleum Association of Japan.
This move aligns with a rare, collective decision by the International Energy Agency (IEA) member countries on March 11 to release oil from their strategic reserves. It represents the largest such coordinated release in the agency’s history, designed to cushion the global economy from price spikes following the outbreak of conflict in the Middle East.
Japan’s heavy reliance on imported oil underscores the significance of its reserves. Approximately 95 per cent of its crude oil imports originate from the Middle East. As of December, Japan’s total strategic petroleum reserves, among the world’s largest, exceeded 400 million barrels.
The simultaneous drawdowns from both national and industry-held stocks, coupled with access to producer joint reserves, demonstrate a multi-layered strategy to augment supply. The government’s actions aim to supplement market availability during the disruption, supporting energy security for the nation’s industries and consumers.
The releases are expected to add tangible volumes to the global market in the coming weeks, contributing to the broader IEA-led effort to prevent supply shortfalls and moderate price volatility. The duration and total volume of Japan’s contribution will be closely watched as part of the international response to the ongoing crisis.
