Japan to release 20 days’ worth of national oil reserves from May 1 amid Mideast energy shock

Japan will begin releasing part of its national oil reserves from May 1, equivalent to around 20 days’ worth of supply, as the Middle East crisis continues to disrupt crude flows through the Strait of Hormuz, the Economy, Trade and Industry Ministry said Friday.

“In light of the current situation in the Middle East, we are making every effort to procure crude oil through routes that do not pass through the Strait of Hormuz,” the ministry said in a statement.

Tokyo expects to secure more than half of its crude supply from alternative sources by May compared with last year’s levels, it said.

“As a result of the progress in alternative procurement, we are able to secure the supply of oil beyond the end of the year while keeping the amount of stockpile release to a minimum,” the ministry added.

The ministry said it would release the next batch of national stockpiled crude under Article 31 of the Petroleum Stockpiling Law to continue ensuring stable crude oil supplies.

The total amount to be released will be approximately 5.8 million kiloliters, with an estimated value of around 540 billion yen, or about $3.38 billion.

Japan, one of the world’s largest crude importers, relies heavily on Middle Eastern energy supplies, making the closure and disruption risks around the Strait of Hormuz a major concern for the country’s energy security.

• Japan will begin releasing part of its national oil reserves from May 1
• Strait of Hormuz