Japan Rules Out Another Oil Reserve Release as G7 Agrees to 100 Million Barrels

Japan has no plan for another release of crude from its national reserves “at this stage,” Chief Cabinet Secretary Minoru Kihara said Oct. 5, as the Group of Seven agreed to coordinate a 100 million-barrel release of oil and fuel stocks over four months.

The G7 action will proceed through the International Energy Agency and begin immediately. It calls for a substantial, front-loaded diesel release by G7 members and partners within the first 20 days. The statement does not specify country contributions or how the 100 million barrels will be divided among crude and refined products.

In March, an emergency action made 400 million barrels of oil stocks available amid energy-market disruptions linked to the conflict in the Middle East. About 325 million barrels had been released by Oct. 2. The G7 asked the IEA to monitor implementation of the March commitments and the new measures, accounting for commitments already fulfilled, and deliver a follow-up report before 20 days.

Japan’s position follows a June decision by the Ministry of Economy, Trade and Industry not to determine that month whether to make a third national reserve release. The ministry cited progress in securing alternative crude supplies and an expectation that July supply would recover to about the prior year’s level.

The G7 statement also calls for coordination of refinery maintenance, increased refinery use where feasible and avoiding restrictions on energy exports among member countries.