MONTREAL (Oil Monster): Japan has no plans for another release from its national emergency oil reserves after already drawing down stockpiles in response to disruptions in Middle East energy supplies, the government said Monday.
Chief Cabinet Secretary Minoru Kihara said Tokyo is already carrying out previously announced releases and does not currently intend to authorize an additional drawdown.
The decision comes days after Group of Seven countries agreed to make 100 million barrels of crude oil, diesel and other emergency petroleum stocks available over a four-month period as governments continue efforts to stabilize global energy markets.
Kihara said Japan had already been releasing crude from its emergency reserves and therefore did not plan an additional release in response to the latest international action.
Japan began drawing on its stockpiles earlier this year after disruption to tanker traffic through the Strait of Hormuz sharply reduced access to Middle Eastern crude.
The country is particularly exposed to interruptions in Gulf supplies because a large share of its crude imports traditionally comes from the Middle East.
Japan was assigned approximately 79.8 million barrels under the International Energy Agency's coordinated emergency response announced in March.
The contribution included about 54 million barrels from public stocks and 25.8 million barrels through reductions in mandatory industry inventories, according to the IEA.
Japan initially reduced private-sector stockholding requirements and began releasing national reserves in March.
A second round of national crude releases began in May, covering approximately 20 days of domestic supply.
The 32 members of the International Energy Agency agreed on March 11 to make 400 million barrels of emergency oil stocks available to the market in response to severe supply disruptions caused by the Middle East conflict.
It was the largest coordinated emergency oil-stock action in the agency's history.
IEA Executive Director Fatih Birol said in early October that member countries had already released about two-thirds of the committed volumes.
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G7 countries have now agreed to make an additional 100 million barrels of crude, diesel and other emergency petroleum supplies available over approximately four months.
The group also pledged to avoid restrictions on energy exports as governments seek to increase the availability of fuel in international markets.
However, the relationship between the latest G7 announcement and the earlier 400-million-barrel IEA program remains unclear.
Reuters reported that it has not yet been established how much of the 100-million-barrel commitment represents genuinely additional volumes rather than implementation of releases already pledged under the March agreement.
The Strait of Hormuz remains central to Japan's energy security.
An average of approximately 20 million barrels per day of crude oil and petroleum products moved through the waterway in 2025, according to the IEA, representing about 25% of global seaborne oil trade.
Roughly 80% of those oil flows were destined for Asia, with Japan among the countries particularly dependent on crude moving through the strait.
The Middle East conflict that began February 28 sharply disrupted those flows and forced Japan to secure more crude through alternative suppliers and routes.
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Tokyo has spent much of the year diversifying its crude sourcing as traditional Middle Eastern supply routes became less reliable.
Japan has increased purchases from alternative suppliers and used routes that avoid the Strait of Hormuz, including crude exported through Saudi Arabia's Red Sea facilities and the United Arab Emirates' Fujairah terminal.
Japan also received Mexican crude this year as refiners sought additional sources outside the Gulf.
Japan entered the current crisis with one of the world's largest emergency oil stockpiles.
Its decision not to announce another immediate drawdown does not prevent future releases if supply conditions deteriorate further.
The IEA has also said additional emergency measures remain available if market conditions require them.
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Attention will now shift to implementation of the G7's latest 100-million-barrel commitment and whether European countries accelerate releases of diesel and other refined products.
Japan's position could also change if oil flows through the Strait of Hormuz deteriorate again or alternative crude supplies become more difficult to secure.
For now, Tokyo is relying on the emergency releases it has already authorized rather than committing additional national stockpiles.
Sources: Reuters; International Energy Agency; Japan Ministry of Economy, Trade and Industry.
