Japan PM Takaichi asks IEA chief for further oil stockpile release

(Reuters)

TOKYO, March 25 – Japanese Prime Minister Sanae Takaichi asked International Energy Agency chief ​Fatih Birol for an additional coordinated release of oil stockpiles when they ‌met on Wednesday, as Tokyo seeks to hedge against a prolonged Middle East conflict.

After agreeing to release a record amount of oil stockpiles in coordination with the ​IEA to cover for the Middle East supply loss, Takaichi on ​Tuesday said Japan would also open up joint oil stockpiles co-owned ⁠by producing nations in the country.

In Australia this week ahead ​of a Group of Seven meeting, Birol said the IEA is consulting with ​governments in Asia and Europe about the release of more stockpiles “if necessary,” as the Iran war disrupts flows from the Middle East.

“In preparation for the possibility that ​the situation becomes prolonged, I asked that preparations be made for ​an additional coordinated release,” Takaichi said in a social media post. “We will continue ‌to ⁠work closely with the IEA.”

The joint release of 400 million barrels, agreed upon on March 11, is only 20% of the oil and oil-product stocks held by consuming nations that the IEA is coordinating, Birol ​said in Tokyo ​on Wednesday.

“If and ⁠when necessary, we are ready to move forward, but I very much hope that it will not ​be necessary,” Birol said after meeting Takaichi.

There are 45 ​Japan-related ⁠ships that are still stranded in the Gulf as the Strait of Hormuz remains closed, said Hitoshi Nagasawa, chairman of the Japan Shipowners’ Association ⁠and ​also head of Japan’s NYK Group (9101.T), opens new tab, one ​of the world’s largest shipping companies, on Wednesday.