Japan plans to release six million barrels of oil from private reserves

Japan’s Industry Ministry said on Friday it will release six million barrels of oil from privately owned reserves, as part of its contribution to the second round of coordinated withdrawals from reserves led by the International Energy Agency to cool crude prices.

Japan will release the amount of oil, which is equivalent to three days of domestic consumption, by allowing the country’s refiners to reduce the level of mandatory stockpiles in special reserves by three days to 63 days of domestic demand.

Japan said this month it would release an unprecedented 15 million barrels of oil from national reserves as part of the second round of coordinated withdrawals led by the agency.

A ministry official said the remaining nine million barrels would be released from government oil reserves, and decisions would be made later on details such as how and when it would be used.

Japan’s oil reserves reached 470 million barrels at the end of January, which is equivalent to domestic consumption for a period of 236 days, and it includes the special reserves of domestic refineries and a joint storage program for crude oil with producing countries.

Earlier this month, the agency’s member states agreed to withdraw 60 million barrels of oil from storage, in addition to the 180 million barrels that Washington announced in late March with the aim of calming prices after Russia’s invasion of Ukraine.