Japanese oil refiners call on the government to tap into strategic petroleum reserves

Japanese Oil Refiners Urge Government to Tap Reserves Amid Middle East Tensions

With approximately 95% of Japan's crude oil coming from the Middle East, the nation's oil refiners are pressing the government to consider releasing oil from strategic reserves to maintain refinery operations as conflict in the region intensifies.

According to sources familiar with the matter, Japanese refiners are in discussions with officials about the possibility of utilizing both the country's emergency stockpiles and oil stored in facilities leased to oil-producing nations, as reported by Bloomberg.

Earlier this week, Ryosei Akazawa, Japan's Minister of Economy, Trade, and Industry, stated that there are currently no plans to release oil from the nation's strategic reserves at this time.

Japan's dependence on Middle Eastern crude is significant, with most supplies sourced from Saudi Arabia, Kuwait, the United Arab Emirates, and Qatar. Roughly 70% of these shipments typically reach Japan via tankers passing through the Strait of Hormuz.

This vital shipping route has been largely inaccessible to oil tankers since the start of the week, following the escalation of hostilities in the Middle East. Shipowners have halted transit through the strait, and insurers have withdrawn war risk coverage for vessels operating in the Strait of Hormuz, the Persian Gulf, and the Gulf of Oman.

As a major importer heavily reliant on Middle Eastern oil, Japan—a member of the G-7—faces heightened risks of shipment delays.

Nevertheless, Japan maintains substantial oil reserves and is part of the International Energy Agency (IEA), which mandates that member countries hold oil stocks equivalent to at least 90 days of net imports and be prepared for coordinated action during major supply disruptions.

By the end of 2025, Japan's oil reserves stood at 254 days' worth of supply, including 146 days in government-held reserves and over 100 days in private sector inventories.

By Tsvetana Paraskova for Oilprice.com