Japan working to release oil reserves after US request – Sources

Cosmo Energy Holdings Cosmo Oil Service Branch appeared in Tokyo, Japan on December 17, 2015. Photo taken December 17, 2015. REUTERS / Yuya Shino / File Photo

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TOKYO, Nov. 22 (Xinhua) – Japanese government officials are working to find limits on the release of crude oil by consolidating crude oil reserves with other major economies, four government sources told Reuters.

Following the request from Washington, Prime Minister Fumio Kishida said he was ready for the weekend, but that the world’s fourth-largest oil buyer is made up of private and public shares – how can it be used normally? In times of scarcity.

One source said the government was considering withdrawing its shares from the government in addition to the minimum amount required as a legal solution.

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Officials are looking at private stocks that are part of the National Reserve, with some advisers arguing that they could be released indefinitely, a second source said.

“We have no choice but to bring something,” a third source told Reuters after the US request. Since the plan was not made public, not all sources were identified.

Hirokazu Matsuno, the secretary-general of the cabinet, said on Monday that no decision had been made. Read more

“We have to change our law and it will take time. But some argue that private collections may be released,” the second source said.

“We have to expand the definition so we have to release them,” the official said.

Traders say they have not received a bid.

According to the state agency Jugmeck, 175 million barrels of crude oil and crude oil, including refineries by Japanese private companies, will be used as a strategic petroleum reserve (SPR) for 90 days. Has decided.

The Gulf War of 1991 and Following the 2011 earthquake and tsunami, oil companies’ stocks were used. According to Ferdinand Fesharaki, Chairman of Fact Global, “The state in the SPR has never been used and Japan has a” useless “oil reserves.

“There is no way the Japanese government can do anything without the request of the United States,” Fesharaki said in a telephone interview.

“The impoverished country is a product of the bureaucracy of the 1970s and 1980s oil crises,” he said. “There will be no change until that group dies.”

Brent Crude has recovered from previous losses and has risen by almost 0.5% since Friday’s fall, mainly due to future locks rather than plans to release oil in Europe.

Biden’s administration has made an unusual request for other major economies to consider releasing oil from their strategic reserves, as high prices could cause unwanted inflation and hurt recovery from the COVID-19 pandemic.

Citing government sources, Yomiuri reported that Japan and the United States would co-sponsor an announcement earlier this week that oil reserves would be released.

At the end of September, Japan’s oil reserves will have 145 days of daily petroleum consumption, according to official data, for at least 90 days required by law.

The private sector has a total cost of 90 days, as well as a minimum of 70 days.

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Reporting by Yoshifumi Takmoto, Ritsuko Shimizu and Aaron Sheldrik; Writing and further reporting by Cantaro Komiyaya; Edited by Chang-Ran Kim, Jacqueline Wong and Louise Havens

Our standards are published in The Thomson Reuters Trust Principles.

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