MARKET STRUCTURE · EAST ASIA
Japan begins releasing state oil reserves
Change
Japan will start releasing oil from state reserves on Thursday.
Why it matters
State reserves will be released starting Thursday. This follows the release of private-sector stockpiles that began last week. Joint oil reserves of oil-producing Middle Eastern nations stored in Japan will be tapped by the end of the month. The moves are presented as a response to escalating supply disruptions linked to the US-Israeli war against Iran and disruptions affecting the Strait of Hormuz.
Implications
- · National strategic oil stock levels will decline as state releases proceed.
- · Available oil supply for Japan's domestic market will increase through combined state and private stock deployments.
- · Joint Middle Eastern reserves held in Japan will be transferred into use when tapped by the end of the month.
- · Coordination and logistics for distribution and storage operators will be required to handle the released volumes.
Who is affected
- · Refiners
- · Importers
- · Operators
What to watch
- · Releases begin on Thursday
- · Joint Middle Eastern reserves to be tapped by end of the month
Source
Topics
Business & Markets Supply Chain & Logistics Energy & Power Oil & Gas