Tokyo: Japan’s Ministry of Industry announced on Friday that it will release 6 million barrels of oil from private reserves as part of its contribution to a second round of coordinated release from the International Energy Agency (IEA ) to calm crude oil prices.
Japan will release oil, equivalent to about three days of domestic consumption, by allowing local refiners to reduce their mandatory storage level in private reserves by three days, to 63 days of domestic demand, from April 16 to October 8.
Japan announced earlier this month that it would release a record 15 million barrels of oil from national reserves in a second round of coordinated release led by the IEA.
The remaining 9 million barrels of oil will be released from state oil reserves, with details such as the method to be used and the timing to be decided later, a ministry official said.
Japan held approximately 470 million barrels of oil reserves at the end of January, or 236 days of domestic consumption, comprising state reserves, private reserves held by local refiners’ reservoirs and a joint crude oil storage system with the producing countries.
Earlier this month, IEA states agreed to extract 60 million barrels of oil from storage, in addition to a release of 180 million barrels announced by Washington in late March aimed at cooling prices after the Russian attack on Ukraine.