Japan Energy Minister Backs Proposed Coordinated Release Of Oil Reserves

TOKYO, March 10 (Bernama-Kyod) -- Japan supports a possible coordinated release of oil reserves by International Energy Agency (IEA) member countries, Industry Minister Ryosei Akazawa said Tuesday, as the US-Israeli war against Iran has triggered concerns over energy supply and led to a spike in oil prices, Kyodo News reported.

Japan, which heavily relies on the Middle East for crude oil imports, believes such a release is "an effective tool toward stabilising global markets," the minister said ahead of a virtual meeting of energy ministers of the Group of Seven industrialised nations, which he attended.

The G7 energy ministers confirmed that they stand ready to take necessary measures, such as drawing down stockpiles, to support global energy supply, Akazawa said later in the day.

IEA Executive Director Fatih Birol, who joined the discussions, said in a statement that an extraordinary meeting of IEA member governments will take place soon to "assess the current security of supply and market conditions to inform a subsequent decision on whether to make emergency stocks of IEA countries available to the market."

The energy ministerial talks involving the G7 members -- Britain, Canada, France, Germany, Italy, Japan and the United States, plus the European Union -- followed a virtual meeting on Monday of the group's finance ministers, during which they discussed a possible coordinated release of oil reserves.

As he did during the finance ministerial meeting, Birol said he provided an update on the IEA's view of the situation in global energy markets at the energy ministerial talks, noting the "significant and growing risks" for the oil markets.

Crude oil futures recently rose above US$119 per barrel, the highest level since June 2022, amid concern that the conflict in the Middle East will disrupt supplies.

IEA member countries are required to ensure they have oil stock reserves equivalent to no less than 90 days of net imports and to be ready to collectively respond to severe supply disruptions affecting the global oil market.

According to the IEA, its member nations, including the G7 countries, currently hold over 1.2 billion barrels of public emergency oil reserves. The United States and Japan store a combined 700 million barrels.

In the most recent case, an IEA-coordinated oil reserve release took place in 2022 to ensure the stability of oil markets after Russia launched a full-scale invasion of Ukraine.

-- BERNAMA-KYODO