Japan says beginning release of strategic oil reserves as Middle East war hikes prices

Japan said on Monday it was beginning the release of its strategic oil reserves after the International Energy Agency indicated earlier that the release would begin in Asia and Oceania before other regions.

IEA members agreed on March 11 to tap oil stockpiles to cushion the surge in prices caused by the war in the Middle East -- by far the largest-ever response of its kind.

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Japan, which depends on the Middle East for 95 percent of its oil imports, said Monday in a notice in its official government gazette that the level of oil reserves in the country "is being lowered".

The issuance of the notice compels managers of oil reserves to release part of their stockpile to meet the new standard.

Many Japanese media interpreted the notice as confirmation the release had already begun.

Minoru Kihara, top spokesman for the government, said Monday the country would release 15 days worth of private-sector petroleum reserves.

Japan's strategic oil reserves are among the world's largest and stood at more than 400 million barrels as of December.

The country holds reserves equivalent to 254 days of domestic consumption.

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Ryosei Akazawa, the minister of economy, trade and industry, said on Friday that private oil reserves would be released before government stockpiles.

Takaichi said last week that the country planned to release one month's worth of national reserves.

The IEA said earlier a total 271.7 million barrels of government-managed stocks would be released worldwide.

"Individual implementation plans have been submitted to the IEA by Member countries. These plans indicate that stocks will be made available by IEA Member countries in Asia Oceania immediately," said the IEA.

"Stocks from IEA Member countries in the Americas and Europe will be made available starting from the end of March," it added.