Japan to release oil stocks as US says buy American

• Japan depends on the Middle East for approximately 90% of its oil supply and maintains 254 days worth of consumption in strategic reserves, established in 1978 following the Arab oil embargo
• The release includes 15 days worth from private-sector reserves starting immediately and one month's worth from state reserves later in March, with an additional 12 million barrels potentially available from joint reserves held by Saudi Arabia, UAE, and Kuwait
• The U.S. is encouraging allies to purchase more American energy, noting Japan currently gets only 4% of its oil from the U.S. after stopping Russian purchases following the 2022 Ukraine invasion

Summary

Key Development: Japan announced it will release 80 million barrels of oil from its strategic reserves starting March 15, 2026, representing approximately 45 days of supply and a 17% reduction in national stockpiles. This action responds to supply disruptions from the U.S.-Israeli conflict with Iran affecting the Strait of Hormuz.

Critical Figures:

• Release volume: 80 million barrels (15 days from private sector reserves immediately, 30 days from state reserves later in March)
• Part of 400 million barrel coordinated global release through the International Energy Agency
• Additional 12 million barrels potentially available from Saudi Arabia, UAE, and Kuwait joint reserves in Japan
• Japan currently maintains 254 days of consumption in reserves

Strategic Context: Japan relies on the Middle East for approximately 90% of its oil supply, making it highly vulnerable to Gulf disruptions. The nation established its reserve system in 1978 following the Arab oil embargo. Japan receives only 4% of oil from the U.S. currently, having ceased Russian purchases after the 2022 Ukraine invasion.

Market Implications: Experts warn that while reserves can stabilize short-term prices and supply, they cannot offset prolonged Strait of Hormuz disruptions. Japan is exploring alternative suppliers from the U.S., Central Asia, South America, and Gulf nations with routes bypassing the strait.

U.S. Position: The U.S. EPA Administrator emphasized American energy security advantages, encouraging Indo-Pacific allies to increase purchases of U.S. crude, particularly highlighting Alaska's historically secure supply routes to Japan.