© Reuters. File photo: A branch of the Cosmo Oil service station of Cosmo Energy Holdings was seen in Tokyo, Japan on December 17, 2015. The picture was taken on December 17, 2015. REUTERS/Yuya Shino
TOKYO (Reuters)-Japan’s Kyodo News reported on Saturday that the Japanese government is considering releasing oil from its reserves in response to price increases, but did not cite sources.
Kyodo News Agency said that this will be the first time Japan has released oil reserves to reduce prices, although the country has used such reserves in the past when faced with natural disasters and geopolitical risks overseas.
Government officials were not immediately contacted for comment.
Faced with declining approval ratings and rising gasoline prices, the administration of US President Joe Biden has put pressure on https://www.reuters.com/business/energy/asia-looks-spr-shock-treatment-high-oil-prices-after- us-request-2021-11-18 Some of the largest economies in the world are considering releasing oil from their strategic reserves to quell high energy prices.
These requirements include the first request that China consider releasing crude oil inventories.
A person familiar with the matter previously told Reuters that Japan has responded positively to the initial contact by the United States on the possible coordinated release of reserves and is considering this step.
According to Reuters’ first report, Chief Cabinet Secretary Hiroshi Matsuno, Chief Cabinet Secretary, declined to comment on the US request on Thursday.
“We will continue to pay close attention to how rising crude oil prices will affect the global energy market and the Japanese economy,” he told reporters. “While urging oil-producing countries to increase oil production, we will work to stabilize the energy market by coordinating with major consumer countries and international organizations (such as the International Energy Agency).”
Most of the oil in resource-poor Japan comes from the Middle East. The recent surge in oil prices and the depreciation of the yen have pushed up the cost of imports, causing a double blow to countries that rely on trade.
On Friday, the government of Japanese Prime Minister Fumio Kishida announced a record $490 billion stimulus plan, which includes measures to deal with rising oil prices. It plans to subsidize oil refineries in order to limit the wholesale prices of gasoline and fuel in order to alleviate the suffering of households and businesses caused by rising oil costs.
“The important thing is to urge oil-producing countries to increase oil production,” Kishida said after discussing with cabinet ministers last month. “We will arrange specific measures after confirming which industries are affected.”
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