(Reuters)
TOKYO, March 25 – Japanese Prime Minister Sanae Takaichi asked International Energy Agency chief Fatih Birol for an additional coordinated release of oil stockpiles when they met on Wednesday, as Tokyo seeks to hedge against a prolonged Middle East conflict.
After agreeing to release a record amount of oil stockpiles in coordination with the IEA to cover for the Middle East supply loss, Takaichi on Tuesday said Japan would also open up joint oil stockpiles co-owned by producing nations in the country.
In Australia this week ahead of a Group of Seven meeting, Birol said the IEA is consulting with governments in Asia and Europe about the release of more stockpiles “if necessary,” as the Iran war disrupts flows from the Middle East.
“In preparation for the possibility that the situation becomes prolonged, I asked that preparations be made for an additional coordinated release,” Takaichi said in a social media post. “We will continue to work closely with the IEA.”
The joint release of 400 million barrels, agreed upon on March 11, is only 20% of the oil and oil-product stocks held by consuming nations that the IEA is coordinating, Birol said in Tokyo on Wednesday.
“If and when necessary, we are ready to move forward, but I very much hope that it will not be necessary,” Birol said after meeting Takaichi.
There are 45 Japan-related ships that are still stranded in the Gulf as the Strait of Hormuz remains closed, said Hitoshi Nagasawa, chairman of the Japan Shipowners’ Association and also head of Japan’s NYK Group (9101.T), opens new tab, one of the world’s largest shipping companies, on Wednesday.
