Japan taps oil reserves again amid Middle East crisis

Japan on Friday began an additional release of oil reserves equivalent to about 20 days of supply, aiming to maintain stable domestic availability after disruptions caused by the Middle East conflict.

The step follows an earlier release in mid-March, when roughly 50 days’ worth of oil was drawn from reserves held by the government, private companies, and oil-producing Gulf nations, News.Az reports, citing Xinhua.

The second release will make available 5.8 million kiloliters of oil, valued at approximately 540 billion yen (around 3.45 billion U.S. dollars).

The oil from national reserves will be distributed from 10 storage facilities across the country to four major oil wholesalers.

Japan, which has limited natural resources, depends on the Middle East for more than 90 percent of its crude oil imports. Most of these shipments pass through the Strait of Hormuz, a key route for global oil transportation.

Ongoing disruptions in the strait linked to the Middle East conflict have led Japan to draw on its reserves while also seeking to diversify energy sources and shipping routes.

News.Az 

By Nijat Babayev