Japan has started releasing its strategic oil reserves following an IEA agreement to stabilise global markets amid Middle East conflict.

TOKYO: Japan confirmed on Monday it has begun releasing oil from its strategic reserves. The move follows a coordinated International Energy Agency (IEA) agreement to tap stockpiles and cushion surging prices caused by the war in the Middle East.

An official notice in the government gazette stated the level of oil reserves in the country “is being lowered”. This notice legally compels reserve managers to release part of their stockpile to meet a new standard.

Many Japanese media outlets interpreted the announcement as confirmation the release had already started. Government top spokesman Minoru Kihara said Japan would release 15 days worth of private-sector petroleum reserves.

Japan holds one of the world’s largest strategic oil reserves, with over 400 million barrels as of December. This equates to 254 days of domestic consumption, highlighting the nation’s heavy reliance on imports.

Economy Minister Ryosei Akazawa stated last Friday that private oil reserves would be released before government stockpiles. The country plans to ultimately release one month’s worth of national reserves.

The IEA said a total of 271.7 million barrels of government-managed stocks would be released worldwide. It indicated stocks from member countries in Asia and Oceania would be made available immediately.

Stocks from IEA member countries in the Americas and Europe will follow starting from the end of March. The agency’s 11 March agreement marks the largest-ever coordinated response of its kind.

Japan depends on the Middle East for 95% of its oil imports. The global release aims to stabilise markets disrupted by the ongoing regional conflict.

 The Sun Malaysia