Japan begins releasing oil reserves amid Middle East conflict

Tokyo — Japan commenced releasing strategic oil reserves on Monday to address supply concerns amid escalating Middle East conflict and ensure stable petroleum product distribution, according to local media reports.

In the initial phase, Japan will release private sector oil reserves equivalent to 15 days of domestic consumption, with government-owned reserves equivalent to one month of demand to follow subsequently, according to Kyodo News.

The Japanese government will also reduce the minimum reserve requirement for oil refining companies and trading firms from 70 days to 55 days, enabling them to utilise existing stock.

On 11 March, Prime Minister Sanae Takaichi announced the government’s plan to release approximately 80 million barrels of oil, marking the largest release in the nation’s history.

This volume is equivalent to 45 days of domestic consumption and 1.8 times greater than the volume released following the earthquake and tsunami that struck north-east Japan in 2011, Kyodo News reported.

Preparations are also underway to sell oil from government reserves to wholesale traders.

This action marks the seventh instance Japan has utilised its oil reserves since the system was introduced in the 1970s. By the end of 2025, Japan held oil reserves equivalent to 254 days of domestic demand.

Japan depends on the Middle East for over 90 per cent of its crude oil imports, rendering the country highly vulnerable to effective closure of the Strait of Hormuz following the outbreak of Middle East conflict in late February. This disruption triggered a sharp surge in crude oil prices in Japan.