Japan, following its strategic ally, the United States, begins the sale of strategic oil reserves. The Japanese government announced that it will sell part of its excess strategic reserves in a volume that does not violate the law.
As Japanese Prime Minister Fumio Kishida emphasized, Tokyo has always cooperated with Washington in stabilizing international markets and will also sell part of the state's oil reserves in a volume that does not violate the law. He also noted that the stability of oil prices is an important factor in the post-pandemic economic recovery.
Japan is expected to sell at least 4.2 million barrels of reserves, equivalent to one to two days of domestic demand.
According to local media reports, at the end of September, Japan had oil reserves that met domestic demand for about 240 days.
Previously, Japan freed up private oil reserves during the major earthquake in the east of the country and the Libyan crisis, but the current move is an unprecedented step. According to local legislation, oil reserves are not a price stabilization tool. However, at present, both the government and the private sector have excess oil reserves, the sale of which is not limited by law.
The White House announced on Tuesday that the US Department of Energy will sell 50 million barrels of oil from strategic reserves to reduce the imbalance between supply and demand during the economic recovery and reduce prices.