Japanese Refiners Urge Government to Release Strategic Oil Reserves

Core Viewpoint - Japanese oil refiners are urging the government to utilize strategic petroleum reserves due to escalating tensions in the Middle East affecting crude supply [1][2]. Group 1: Government Response - The Japanese Minister of Economy, Trade, and Industry stated that there are no immediate plans to release crude from strategic reserves [2]. - Japan's heavy reliance on Middle Eastern crude, sourcing about 95% from the region, primarily from Saudi Arabia, Kuwait, UAE, and Qatar, poses a risk of supply disruptions [2][4]. Group 2: Supply Chain Concerns - The Strait of Hormuz, a critical oil transit chokepoint, has been effectively closed to tanker traffic since the escalation of conflict, impacting oil deliveries [3]. - Approximately 70% of Japan's Middle Eastern crude typically arrives via tankers through the Strait of Hormuz [2]. Group 3: Strategic Reserves and Preparedness - Japan has a significant oil reserve, with 254 days of oil reserves at the end of 2025, including 146 days in national reserves and over 100 days in private sector inventories [4][5]. - As a member of the International Energy Agency (IEA), Japan is required to maintain oil stock levels equivalent to at least 90 days of net imports and is prepared to respond to severe supply disruptions [4].