Investing

In a first, Japan considers release of oil reserves after U.S. request – sources By Reuters

© Reuters. FILE PHOTO: A branch of Cosmo Energy Holdings’ Cosmo Oil service station is seen in Tokyo, Japan, December 17, 2015. Picture taken December 17, 2015. REUTERS/Yuya Shino/File Photo

By Ritsuko Shimizu and Yoshifumi Takemoto

TOKYO (Reuters) – Japan is considering the unprecedented release of state oil reserves after a request from Washington for coordinated action to combat soaring energy prices, three government sources with knowledge of the possible plan told Reuters.

One of the sources said the government was looking into releasing from the portion exceeding the minimum amount required as a legal workaround. Japanese law permits the release of oil reserves in cases of a shortage or natural disasters but makes no mention of doing so to counter rising prices.

“We have no choice but to come up with something” after a request from the United States, another one of the sources told Reuters.

The sources declined to be identified because the plan has not been made public.

Japan has never released oil from its state reserves, while oil companies have done so during the 1991 Gulf War and following the 2011 earthquake and tsunami disasters.

Chief Cabinet Secretary Hirokazu Matsuno said on Monday nothing had been decided, while Prime Minister Fumio Kishida said on Saturday the government was in the process of considering what it could do legally.

The Biden administration made the unusual request to some of the world’s largest oil-consuming nations – including China and India – to consider releasing oil from their strategic reserves after members of the Organization of Petroleum Exporting Countries and its allies repeatedly rebuffed its requests to speed up their production increases.

The Japanese government held 145 days’ worth of daily petroleum consumption at the end of September, according to official data, well above the minimum 90 days required by law.

Private-sector reserves total 90 days’ worth, also exceeding the minimum 70 days’ requirement.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Most Related Links :
Business News Governmental News Finance News

Need Your Help Today. Your $1 can change life.

[charitable_donation_form campaign_id=57167]

Source link

Back to top button