Japanese Prime Minister Sanae Takaichi met IEA Executive Director Fatih Birol on Wednesday, requesting preparations for an additional coordinated oil stockpile release to hedge against a prolonged Middle East conflict. Birol said the agency is ready to proceed if necessary.
Japanese Prime Minister Sanae Takaichi met International Energy Agency Executive Director Fatih Birol in Tokyo on Wednesday, asking for preparations toward an additional coordinated release of oil stockpiles as Japan seeks to counter risks from a prolonged Middle East conflict. In a social media post, Takaichi said, 'In preparation for the possibility that the situation becomes prolonged, I asked that preparations be made for an additional coordinated release. We will continue to work closely with the IEA.' Birol responded after the meeting, 'If and when necessary, we are ready to move forward, but I very much hope that it will not be necessary.' The 400 million barrel joint release agreed on March 11 covers only 20% of the oil and oil-product stocks held by IEA-coordinating consuming nations, Birol noted. On Tuesday, Takaichi announced Japan would also open joint oil stockpiles co-owned with producing nations. The request comes amid an Iran war disrupting Middle East flows and the closure of the Strait of Hormuz. Hitoshi Nagasawa, chairman of the Japan Shipowners' Association and head of NYK Group, said 45 Japan-related ships remain stranded in the Gulf. Earlier this week in Australia ahead of a Group of Seven meeting, Birol said the IEA is consulting Asian and European governments on further releases 'if necessary.'
