Japan expands oil reserve release over Hormuz risk
The Japanese government said Friday it will additionally start releasing around 20 days’ worth of oil reserves from May 1, amid uncertainty over the reopening of the Strait of Hormuz despite a U.S.-Iran ceasefire deal, News.Az reports, citing Kyodo.
The move follows an initial release of about 50 days’ worth of oil to the market that began in mid-March, using reserves held by the state and other stockpiles to stabilise the resource-scarce country’s energy supply after U.S.-Israeli strikes on Iran.
The second release will free up 5.8 million kilolitres, valued at 540 billion yen (around $3.4 billion), according to Japan’s Ministry of Economy, Trade and Industry.
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The national reserves will be distributed from 10 storage bases across the country to four major oil wholesalers: Eneos Corporation, Idemitsu Kosan Co., Cosmo Energy Holdings Co., and Taiyo Oil Co..
Japan depends on the Middle East for more than 90 percent of its crude oil imports, most of which is transported through the Strait of Hormuz, a key global energy shipping route.
By Nijat Babayev
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