Japan kickstarts a sale of oil from its strategic reserves to control the rising prices with a moderate sale, joining an uncoordinated release of crude from strategic stockpiles.
- A government contract offered Oman crude from the strategic reserves in Shibushi for delivery between March and June.
- The move is part of Japan’s effort to sell oil in line with other consuming countries, and a ministry official expects more sales might follow.
- The volume offered for sale was 100,000 kilolitres. That figure is nearly 630,000 barrels. In 2020, Japan bought nearly 3.27M barrels per day.
- The US administration began tapping the first of its pledged 50M barrels of reserves shortly after announcing the coordinated release in late November.
Trade Minister Koichi Hagiuda stated in November that Japan would release oil from its reserves as it replaces oil in its stockpiles.
CL1! down -1.19%, USOIL down -1.05%Source: Bloomberg