Japan: Releasing oil to lower prices is being considered

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The Japanese government is considering releasing oil from its reserves to deal with rising crude prices, the Japanese Kyodo news agency reported today, without citing sources.

It will be the first time that Japan has released its oil reserves to reduce prices, although the country has used its reserves in the past at a time of natural disasters and external geopolitical risks, Kyodo said.

So far, government officials have not commented on the news.

The government of US President Joe Biden, which is facing declining popularity and higher gasoline prices, has pressured some of the world’s largest economies to consider releasing oil from their strategic reserves in a concerted effort. prices and stimulating economic recovery.

In this context, for the first time, China was asked to consider the possibility of decommissioning of its crude reserves.

Japan has reacted positively to the initial US proposal for a possible coordinated release of stocks and is considering such a move, a person familiar with the matter had previously told Reuters.

Japanese Prime Minister-designate Hirokazu Matsuno declined to comment today on US demands, which were first reported by Reuters.

“We will continue to monitor closely how rising crude oil prices will affect global energy markets and the Japanese economy,” he told reporters. “As we urge oil-producing countries to increase production, we will try to stabilize energy markets by coordinating with the most consumed countries and international organizations,” such as the International Energy Agency.

The government of Prime Minister Fumio Kishida announced yesterday, Friday, a $ 490 billion stimulus package, which includes measures to tackle higher oil prices. It plans to subsidize oil refineries in hopes of reducing wholesale gasoline and fuel prices to ease the burden on households and companies from rising oil costs.

“What is important is to urge oil-producing countries to increase production,” Kishida said last month after talks with ministers. “We will take concrete action once we confirm which sectors of the industry are affected.”

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