Japan Urges Asia to Build Up Oil Reserves as Middle East Risks Mount

Japan has called on Asia to bolster its oil reserves amid mounting risks in the Middle East, according to the nation's trade minister. Speaking at a virtual International Energy Forum, Ryosei Akazawa emphasized the need for stronger collaboration between oil producers and consumers, with a focus on increasing oil stockpiles and infrastructure within Asian countries.

He highlighted Japan's intention to serve as a "bridge" between Middle Eastern oil producers and Asian importers, aiming to stabilize global energy supply and making energy security a top priority over efforts to transition away from oil and gas.

The Asia Zero Emission Community, led by Japan, has redirected its attention from emissions to oil supply due to the heightened importance of energy security. The organization recently agreed to expand its oil inventory in Asia and coordinate releases when necessary. A state minister for economy, trade, and industry recently noted that expectations for Japan are high, given its extensive experience in stockpiling.

Japan's strategic reserves have been repeatedly utilized since the war in the Middle East began. In April, the U.S. Energy Information Administration estimated Japan's crude oil stockpile at 263 million barrels, making it the third-largest in the world, after China and the United States. Japan's involvement in releasing crude oil from its strategic reserves began in the spring as part of an IEA-coordinated global effort to release 400 million barrels of crude and oil products.