In response to rising tensions in the Middle East and concerns over crude oil supply, the Japanese government initiated the release of its oil reserves on the 16th. This move lowers the required storage for oil wholesalers and trading companies from 70 days to 55 days, allowing them to draw down 15 days' worth of reserves. This marks the first release of oil reserves under the Law on Oil Stockpiling since Russia's invasion of Ukraine four years ago. As of the end of December last year, the total private sector storage amounted to 101 days, and companies will adjust their reserves as necessary.

Subsequently, the government plans to sell an additional month’s worth of national reserves through discretionary contracts with oil wholesalers, bringing the total release to a record 45 days, which equates to approximately 8 million barrels. Part of this release is also in line with coordinated actions among member countries of the International Energy Agency (IEA). The IEA announced on the 15th that member states in Asia and Oceania will begin their releases soon, with North America and Europe scheduled to start at the end of March. The overall global oil release is set to be the largest on record, totaling around 410 million barrels, with Asia and Oceania contributing approximately 110 million barrels while North America adds roughly 200 million barrels.

This government action reflects an urgent response to global energy market pressures, highlighting concerns about the stability of oil supplies as geopolitical tensions escalate. The commitment to using national stockpiles demonstrates Japan's readiness to collaborate with international partners in safeguarding energy security, while also reinforcing domestic measures to ensure adequate oil availability for its economy.