Japan will help other Southeastern nations with financial support of as much as $10 billion as they struggle with the surging cost of importing crude oil amid conflict in the Middle East, Bloomberg reported on Wednesday, citing local media reports.
Prime Minister Sanae Takaichi is expected to announce the aid package which may come in the form of loans, during an online meeting with regional leaders scheduled for Wednesday afternoon, according to the public broadcaster NHK, Bloomberg reported.
Japan is an importer of petroleum-derived products used in the medical sector from elsewhere in Southeast Asia and there has been concern that low oil reserves could disrupt that supply, the reports said.
The prime minister's office wasn't immediately available to comment, Bloomberg said. The office did not immediately respond to' request for comments.
Should the supply of the chemicals Japan buys face disruption, that could have impacts on the healthcare system, media reports said, according to the Bloomberg report.
The article noted that some Southeastern nations including Vietnam have previously sought assistance from Japan and also South Korea, in obtaining crude oil.
Japan has made withdrawals from its strategic reserves twice since the outset of conflict in the Middle East to prop up supplies for its domestic refiners.
The article said that Japan is not at risk of an immediate shortage, with the trade ministry confident the country can secure supply for all of this year via alternative origins that do not pass through the Strait of Hormuz.
(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)