Japanese government implements "price-controlled" oil release, sells 80 million barrels at pre-war low prices

Golden Ten Data reported on March 13 that Japan's Minister of Economy, Trade and Industry stated that Japan will sell oil from its national reserves at price levels before the outbreak of the Middle East war. This week, Japan announced it would release about 80 million barrels of oil from national and private reserves, possibly starting as early as next week. Minister Akazawa Ryo Masa said on Friday that these crude oils will be sold based on the official sales price levels of Middle Eastern producers prior to the conflict. At a press conference held in Tokyo, Akazawa Ryo Masa stated that the government "hopes that refiners who purchase low-priced crude oil will not subsequently sell products at high prices for personal gain." He added: "The state will maintain communication with refiners to ensure that the release of national reserves is conducted in a manner considered reasonable and convincing by the public." Akazawa Ryo Masa also left open the possibility that if domestic demand is not strong enough, the remaining oil products made from reserve crude oil could be shipped overseas. He stated: "This measure does not prohibit exports."