Japan’s Prime Minister Fumio Kishida has reportedly said he is seeking to remove legal hurdles in an attempt to release national crude oil reserves.
- Japan’s move reportedly happens after a request from the US, which has been calling for more oil in the global markets.
- The move is part of the world’s further-largest oil importer to lower spiraling prices of the precious commodity, which is increasing inflation pressures and undermining Covid-19 recoveries.
- Japan is now said to work on how it can release the oil reserves comprising both public and private stocks. State-held reserves are currently restricted to a limit as the country works on how it can make the process legal.
- An announcement of the release of crude stocks is expected as early as this week.
Japan’s private firms hold up to 175 million barrels of crude and oil products, which is more than the minimum 90 days of daily consumption required by the law.
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Source: Reuters