Japan Moves Early on Strategic Oil Release

Japan began to release oil from its reserves Monday to alleviate supply concerns that have grown amid the US-Israel war with Iran and stabilize the distribution of petroleum products, taking the step ahead of a planned International Energy Agency-led move.

In its first oil release since 2022, when it joined an IEA coordinated effort following Russia’s full-scale invasion of Ukraine, Japan is initially freeing up 15 days’ worth of reserves held by the private sector, with a month’s worth of state-held oil to follow.

Chief Cabinet Secretary Minoru Kihara said the release was decided as Japan’s crude oil imports are expected to decrease significantly from late March onwards due to the effective closure of the Strait of Hormuz, which many tankers traverse.

“We plan to make efforts so that (the released oil) will circulate in the market smoothly,” he said, adding the government will “continue to take every possible step to ensure the stable supply of energy, through international coordination and without ruling out any options.”

The IEA said Sunday the planned coordinated release of oil by its 32 member countries, including Japan, will “soon start.” It said last week that the countries will make 400 million barrels of oil available to the market in response to the disruptions resulting from the Middle East conflict.

Crude oil futures have been surging amid growing prospects of a prolonged conflict, with the benchmark West Texas Intermediate crude oil futures contract briefly topping $100 per barrel again in New York on Sunday, after a similar spike a week earlier.

The Japanese government will reduce the mandatory 70-day reserve requirement for oil refiners and trading companies under Japan’s oil stockpiling law to 55 days’ worth, allowing them to draw down their existing stocks for use.

Last Wednesday, Prime Minister Sanae Takaichi announced the government’s plans to release about 80 million barrels of oil, the largest ever, equivalent to 45 days’ worth of domestic consumption and 1.8 times the amount released after the massive earthquake and tsunami in 2011 that devastated Japan’s northeast.

Preparations are under way to sell oil in government-held reserves to wholesalers.

As of the end of 2025, Japan held reserves of approximately 470 million barrels of oil, equivalent to 254 days of domestic consumption, of which 146 days’ worth were government-owned, 101 days held by the private sector, and the remainder jointly stored by oil-producing countries.

It is the seventh time that Japan’s oil reserves have been tapped since the reserve system began in the 1970s.

Japan imports more than 90 percent of its crude oil from the Middle East, making it highly vulnerable to the effective closure of the Strait of Hormuz that has prevented the transportation of oil and gas from suppliers in the Persian Gulf, causing sharp rises in crude oil prices since the start of the war in the Middle East on February 28.