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Japan Decides Against Releasing Crude Oil From National Reserves in September, October

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Japan has decided to not release any crude oil from its national reserve stockpiles in September or October, Minister of Economy, Trade and Industry Ryosei Akazawa said on Tuesday.

Addressing a post-cabinet meeting press conference, Akazawa said the government expects crude oil procurement to be 100% of last year's level in August.

In September, crude oil tankers originally scheduled to pass through the Bab-el-Mandeb Strait are being rerouted due to heightened tensions in the Middle East and will travel via the Suez Canal or around the Cape of Good Hope, causing a delay in their arrivals. As a result, Japan expects to receive about 80% of its planned September crude oil supplies year-on-year, Akazawa said.

The shortfall can be made up by using already approved crude oil reserves for release that remain unused due to progress in procurement, he said.

From October onwards, Japan expects the rerouting to be completed, with clearer schedules for shipments traveling through the Suez route. As a result, the country expects to return to 100% of planned crude oil supplies in October, similar to August.

Based on this outlook, Japan has decided not to release national reserve stockpiles in either September or October, Akazawa said.

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