Japan plans to start the second round of its national oil reserves release from 1 May, with the total amount at around 5.8mn kilolitres, or 36mn bl, Japan's trade and industry ministry Meti said today.
Meti already announced its plan to start the additional drawdowns from the national crude oil reserves earlier in April, but it had not fixed the exact amount and starting date. The ministry will start the additional release on 1 May, from the Shibushi National Petroleum Stockpiling Base in southern Japan. The release of oil reserves from nine other bases will follow.
Domestic refiners Eneos, Idemitsu, Cosmo Oil and Taiyo Oil will receive the released crude oil. Total sales prices will amount to around ¥540bn ($3.4bn), set in reference to the February official selling prices for each grade as well as the rate of change in the monthly average Brent crude price between February and March.
Japan has 214 days' worth of oil reserves as of 21 April, according to preliminary data from Meti. This includes 131 days of national reserves, 81 days of private-sector reserves and 3 days of joint stockpiles with oil-producing countries. The total amount is lower by 29 days compared with the stockpiled amount at the end of February. Tokyo started drawing down oil reserves on 16 March first by lowering the stockpile mandate for the private sector by 15 days' worth to allow refiners to use their reserves, and it began releasing national reserves on 26 March.
Japanese refiners have been working to secure crude oil from alternative sources and via routes other than the strait of Hormuz, and are looking to the US. A tanker with around 910,000 bl of WTI crude will arrive at Keiyo Sea Berth offshore Chiba prefecture in eastern Japan on 26 April. Cosmo Oil will receive it at its 214,000 b/d Chiba refinery, according to the company. This is Japan's first receipt of US crude procured and loaded after the beginning of the US-Iran war, Meti said.
Japanese prime minister Sanae Takaichi has declared that Japan has sufficient oil supplies that can last beyond the end of this year, taking into account its oil reserves and alternative procurement including from the US.
