Written by Katya Golubkova and Erin Wang
TOKYO (Reuters) – Japanese Prime Minister Sanae Takaishi asked International Energy Agency Director Fatih Birol for an additional coordinated release of oil stocks when they met on Wednesday, as Tokyo seeks to hedge against a protracted conflict in the Middle East.
After agreeing to release a record amount of oil stockpiles in coordination with the International Energy Agency to cover the loss of Middle East supplies, Takaishi said on Tuesday that Japan will also open joint oil stockpiles owned by the country’s producing countries.
In Australia this week ahead of the G7 meeting, Birol said the IEA was consulting with governments in Asia and Europe about releasing more stockpiles “if necessary,” as the Iran war disrupts flows from the Middle East.
“In preparation for a possible prolongation of the situation, I have requested preparations for the release of an additional coordinator,” Takaishi said in a social media post. “We will continue to work closely with the IEA.”
Birol said in Tokyo on Wednesday that the joint release of 400 million barrels, agreed on March 11, represents only 20% of oil and petroleum product stocks held by consuming countries and coordinated by the International Energy Agency.
“If and when necessary, we are ready to move forward, but I very much hope that it will not be necessary,” Birol said after his meeting with Takaishi.
Hitoshi Nagasawa, head of the Japan Shipowners Association and chairman of Japan’s NYK Group, one of the world’s largest shipping companies, said on Wednesday that 45 ships linked to Japan were still stuck in the Gulf as the Strait of Hormuz remained closed.
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