Japan will begin tapping joint oil stockpiles held with major producing nations by the end of March as it intensifies emergency measures to manage supply disruptions caused by the ongoing Middle East crisis.
Prime Minister Sanae Takaichi said Tuesday that Tokyo had already started releasing privately held reserves on March 16 and would begin drawing from national strategic reserves from March 26.
The move follows a sharp surge in global oil prices after the United States and Israel launched missile strikes on Iran on February 28, escalating tensions and leading to the closure of the Strait of Hormuz, a vital shipping route for crude oil and liquefied natural gas.
Japan plans to draw from oil reserves jointly stored in the country by Saudi Arabia, the United Arab Emirates and Kuwait.
Industry Minister Ryosei Akazawa said Japan will use about five days’ worth of supply from the roughly 13 million barrels held under the arrangement.
To secure alternative supplies, two tankers carrying crude from Saudi Arabia’s Yanbu port and the UAE’s Fujairah terminal are already en route to Japan, bypassing the Strait of Hormuz. The shipments are expected to arrive later this week and in early April.
Another tanker carrying crude from outside the Middle East is also heading to Japan and is expected to reach the country in late April.
However, data from ship tracking firm Kpler showed that no Japan-bound tankers have departed the Gulf through the Strait of Hormuz since early March, despite Iran saying Japanese-linked ships could pass safely.
Major shipping companies Mitsui O.S.K. Lines and Nippon Yusen Kaisha said their tankers in the Gulf have suspended transit and remain in safe zones due to the security risks.
The International Energy Agency said Japan’s contribution to a coordinated global release of emergency reserves could reach nearly 80 million barrels, mostly crude oil, as governments attempt to stabilise energy markets.
Industry officials say current stockpile releases could cover supply needs until the end of April, while alternative shipments from the United States or other suppliers may not arrive before June.