Japan Oil Refiners Ask Government to Tap Strategic Reserves

hs1224glpt0)bx2f764yk8(4_media_dl_1.png Ministry of Economy, Trade and IArticle content(Bloomberg) — Japanese oil refiners are asking the government to release crude from the nation’s strategic petroleum reserves as the Middle East crisis worsens, according to people familiar with the matter. Sign In or Create an AccountEmail AddressContinueor View more offersArticle contentThe processors are in discussions with authorities to access government stockpiles as well as oil stored in tanks that are leased to producing countries, said the people, who asked not to be named due to the sensitivity of the matter.Article contentWe apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.Article contentArticle contentThe refiners are asking the government to expedite the process, as a potentially lengthy bidding process may mean supplies could take time to be received, one of the people said.Article contentTop StoriesGet the latest headlines, breaking news and columns.There was an error, please provide a valid email address.Sign UpBy signing up you consent to receive the above newsletter from Postmedia Network Inc.Thanks for signing up!A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Article contentJapan gets more than 90% of its oil from the Middle East, making it highly vulnerable to the effective closure of the Strait of Hormuz that’s preventing energy exports from Persian Gulf suppliers. At least one Japanese refiner has canceled March-loading exports of gasoline, jet fuel and diesel to prioritize domestic usage. Article contentAn official in charge of oil stockpiles at the Ministry of Economy, Trade and Industry wasn’t available for comment.Article contentOther Asian nations are making efforts to conserve energy to safeguard their economies if Hormuz remains blocked. China’s government has told the country’s biggest refiners to suspend exports of diesel and gasoline, while Thailand has said it will stop fuel shipments.Article contentAs of the end of last year, Japan had enough oil in its reserves to last 254 days, according to data from the trade ministry. This includes national stockpiles, sufficient for 146 days, and private-sector inventories, which are equivalent to 101 days of consumption. Article contentArticle contentIn addition, an amount equivalent to seven days of demand is stored in joint reserve programs, according to government data. Under Japan’s joint stockpiling arrangements with Saudi Arabia, the United Arab Emirates, and Kuwait, the crude is normally used to supply Asia, with Japan having priority purchasing rights in times of emergency. Article contentAmong major Japanese storage sites, Kiire in Kyushu has capacity to store more than 46 million barrels, while Okinawa can hold more than 8 million barrels. Saudi Aramco leases space at both locations.Article contentJapan has also this week canceled a sell tender — initially released last month — that offered Middle Eastern crude from the reserves, according to traders with direct knowledge of the matter.Article content—With assistance from Yongchang Chin.Article contentTrending US Sinking of Iranian Warship Piles Pressure on India's Modi PMN Business Bank of Canada governor warns of growing risks to financial stability Economy Legal fight over propane terminal clouds Canada's energy export push Energy Mortgage renewal headwinds near a ‘turning point’ for pandemic buyers, report says Mortgages Posthaste: This dormant pipeline needs to be restarted for the sake of Canada, economists say News Share this article in your social networkCommentsYou must be logged in to join the discussion or read more comments.Create an AccountSign in Join the Conversation Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information. US Sinking of Iranian Warship Piles Pressure on India's Modi PMN Business Bank of Canada governor warns of growing risks to financial stability Economy Legal fight over propane terminal clouds Canada's energy export push Energy Mortgage renewal headwinds near a ‘turning point’ for pandemic buyers, report says Mortgages Posthaste: This dormant pipeline needs to be restarted for the sake of Canada, economists say News