Japan outlines plan on oil reserves

Japan’s Economy, Trade and Industry Minister Akazawa Ryosei said there is no immediate plan to tap the country’s oil reserves. However, he stressed that the government will closely monitor supplies due to the ongoing conflict in Iran.

“Releasing oil reserves is not aimed at curbing prices, but is done to ensure stable supply in a situation that can cause a shortage,” he told reporters. Akazawa’s comments on Tuesday follow reports that oil tankers are staying away from the Strait of Hormuz due to rising security risks to crew and vessels.

Japan gets more than 90 percent of its crude oil from the Middle East, much of it through the Strait. Japan had about 250 days’ worth of oil reserves as of the end of last year. It built the stockpiles after the oil crisis in 1973 that caused prices to soar.