Japanese Prime Minister asks IEA to prepare for additional coordinated oil stockpile release amid Middle East war, as global energy security concerns mount.
TOKYO: Prime Minister Sanae Takaichi has asked the International Energy Agency to prepare for an additional coordinated release of oil reserves.
The request was made as the war in the Middle East continues to threaten global energy security.
IEA Executive Director Fatih Birol responded that the agency is “ready to move forward” with more releases “if and when necessary”.
He made the comments during a visit to Tokyo, where he noted the IEA’s recent action.
Member countries earlier this month agreed to unlock 400 million barrels from strategic reserves, the largest such release ever.
Birol emphasised that this initial release represented only 20% of the IEA’s total stockpiles.
“Eighty percent of our stocks are still with us,” he stated.
He added that he hopes further action will not be needed.
“The world is facing a serious energy security threat, but the International Energy Agency is ready to play its core role of being a guardian of global energy security,” Birol said.
Japan is heavily reliant on Middle Eastern oil, which accounts for 95% of its imports.
The country has already initiated several measures to bolster supply.
It began releasing 15 days’ worth of private-sector petroleum reserves last week.
A release from government stockpiles is scheduled to begin.
Tokyo also plans to tap joint stockpiles held by producing nations in Japan by the end of the month.
These joint reserves are held by Saudi Arabia, the United Arab Emirates and Kuwait.
Under normal circumstances, this jointly stored crude is used commercially.
Japanese oil companies, however, hold preferential purchasing rights in an emergency.
