Japan to release more oil reserves next month as energy crisis continues

(Sharecast News) - Japan has announced that it plans to release oil reserves for the second time since the outbreak of the Iran war as the energy crisis continues to disrupt the supply of crude. "To ensure the stable supply of crude oil, we will release starting in early May the equivalent of roughly 20 days' worth from the national reserves," prime minister Sanae Takaichi.

The decision follows Japan's release of 15 days' worth of emergency private-sector reserves in March - which at the time was the country's largest-ever release of reserves.

"We are on track to secure Japan's oil supply well into next year," Takaichi said. "We need to move faster and stay more alert than ever to prevent any negative impact on the public's daily life and our economy," she said.

Japan, which relies on the Middle East for around 95% of its oil, currently has enough reserves to last 230 days, with 143 days' worth sitting in public stockpiles. May's release is to could from the public stockpiles, Takaichi said.

The move should also help to stabilise prices which, while having come down from earlier peaks since the agreement of a temporary ceasefire between the US and Iran, still trade at multi-year highs with trade through the vital Strait of Hormuz at a near-standstill.