Japan releases 2nd round of oil reserves, secures oil imports amid Mideast tensions
On May 1, the Japanese government began its second round of releasing national oil reserves.
This time, roughly 20 days' worth of oil for domestic consumption is scheduled to be released sequentially from 10 facilities across Japan, including Ibaraki and Kagoshima prefectures.
The government has been releasing reserves since mid-March.
As of April 28, a combined total of 211 days' worth of oil remained in national and private stockpiles.
Government officials said they have been able to secure oil supply crossing into next year through the combination of reserve releases and alternative procurement methods.
Amid difficulties procuring oil from the Middle East, a tanker carrying Russian oil has begun unloading in Imabari, Ehime Prefecture.
The tanker had loads of crude oil produced at the Sakhalin-2 project in the Russian Far East.
This is the first time Japan has procured Russian crude oil since the US attack on Iran.
According to Taiyo Oil, which handled the unloading, this procurement was carried out at the request of the Japanese government.
Crude oil produced at Sakhalin-2 for shipment to Japan is not subject to US or EU economic sanctions imposed after Russia's invasion of Ukraine.
An official of the Economy, Trade and Industry Ministry said Japan has coordinated with the United States and confirmed there are no risks involving the sanctions.
Officials said the Russian crude oil will be refined into petroleum products such as gasoline and kerosene and distributed to the market in Japan.
S/ Akazawa Ryosei, Economy, Trade and Industry Minister / I will not mention specific quantities at this time, but I have confirmed that there will be a steady additional supply of crude oil.
Japan has also secured the United Arab Emirates' commitment to provide additional crude oil.
On May 5, Japan's trade minister visited the UAE where he met with industry minister Sultan Al Jaber and asked for increased crude oil supplies to Japan as well as the replenishment and expansion of oil-producing countries' joint stockpile in Japan.
Akazawa said he also proposed Japan's contributions, including on the financial front, toward future expansion of crude oil production and construction of alternative routes.
The two sides agreed to proceed positively, with Akazawa saying he obtained the UAE's commitment to further increase crude oil supplies to the joint stockpile in Japan.
The Japanese minister said he expects stable procurement to progress more smoothly moving forward.

