Japan to release some oil reserves ahead of IEA decision

Japan plans to release 15 days' worth of private-sector oil reserves and one month's worth of state oil reserves, Prime Minister Sanae Takaichi said on Wednesday, ahead of the International Energy Agency-led action.

To avoid disruption to gasoline and other petroleum product supplies, Japan will tap its reserves in coordination with the G7 and the IEA but will begin releasing them from March 16, she said.

"Rather than wait for formal IEA approval of a coordinated international reserve release, Japan will act first to ease global energy market supply and demand, releasing reserves as early as the 16th of this month," Takaichi said in a broadcast statement.

Japan is dependent on the Middle East for around 95% of its oil supplies.

On Wednesday, government and industry data showed that retail gasoline prices in Japan rose to their highest since December and refineries cut their runs last week, the first week of the U.S.-Israeli war with Iran.

"We will release 15 days of private sector reserves plus one month of national reserves, delivering them to domestic refiners as quickly as possible. We will also promptly utilise joint reserves held with oil-producing nations," Takaichi said.

Japan holds emergency oil reserves equivalent to 254 days of consumption, comprising national stockpiles (146 days), private-sector reserves (101 days) and joint stockpiles with producing countries (7 days).

-Reporting by Kantaro Komiya and Katya Golubkova, Editing by Louise Heavens/Reuters