AsianOil: Middle East flare-up could see Japanese refineries tap strategic reserves

In a report issued on April 20, Japanese oil refiners affirmed their resilience against escalating tensions in the Middle East, stating they anticipate no immediate disruption to crude procurement. The effort at reassuring markets came amid heightened concerns over potential disruptions to global oil supplies due to geopolitical tensions in the region.

Despite expressing confidence in their current purchasing arrangements, however, industry leaders also underscored their readiness to tap into Japan's reserves should the need arise.

This would only happen to ensure the nation's oil supply remains stable they said.

Japan, with a combined public-private sector 240-day reserve of oil, is one of the world's largest importers of crude and monitors global developments daily. It is rare, though, that proactive measures like tapping into reserves are openly discussed.

Speaking to Thomson Reuters, the head of the nation’s Petroleum Association, Shunichi Kito, said: "We don't believe that there are any obstacles to the procurement of crude oil to Japan for now."

In doing so, Kito was responding to a question on the recent attempted bombardment of Israel by Iran and Tel Aviv’s later missile strike on Iran.

The oil executive also acknowledged that any further escalation could, and would likely affect the broader region. In the process, this would lead to a far more serious disruption in oil flow far than at present.

"In case of any disruption in crude oil supply, it is important to be prepared by making flexible use of the oil reserve to ensure that the oil supply will not be disrupted," he said.

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