Japan to begin biggest-ever oil release from national reserves as Middle East energy crisis bites

Japan will begin the biggest-ever release of oil from its strategic reserves this week, the prime minister, Sanae Takaichi, has said, as the country braces for possible shortages caused by the US-Israel war on Iran.The government last week approved the release of 15 days’ worth of private-sector reserves, amid concern that the conflict in the Middle East will continue to hinder the flow of tanker traffic along the Strait of Hormuz.The release of state-owned reserves will begin on Thursday, Takaichi said in a post on X.Japan, a resource-poor country with a huge economy, imports more than 90% of its crude oil from the Middle East, making it particularly vulnerable to the closure of the waterway.Takaichi, who last week resisted calls by Donald Trump to send Japanese maritime self-defence forces to the region, said peace and stability in the Middle East were “extremely important for Japan and the international community”. She added that Tokyo would continue to “make all necessary diplomatic efforts in close coordination with related countries”.Takaichi told Trump during their summit in Washington that Japan’s postwar constitution prevented her from dispatching the country’s naval forces to the Strait of Hormuz.Altogether, about 80m barrels of stockpiled oil – equivalent to 45 days of domestic demand – is being provided to domestic refiners. That is 1.8 times the quantity made available after an earthquake and tsunami badly damaged the Fukushima Daiichi nuclear power plant in March 2011, leading to the temporary closure of all of Japan’s atomic plants.As of the end of last year, Japan held reserves of about 470m barrels of oil, equivalent to 254 days of domestic consumption.The government last week introduced subsidies for fuel products to cap gasoline prices at about ¥170 ($1.10) per litre. The move came after the average retail price of gasoline rose to a record ¥190.8 per litre. The initial subsidy will be reviewed every week based on oil prices.Concern that the Strait of Hormuz could remain closed for an extended period has triggered anxiety among some Japanese consumers over the availability of toilet paper and other household essentials.This week, the trade and industry ministry advised consumers not to hoard toilet roll, after social media posts triggered fears that its price and supply could be negatively affected by disruption to oil imports.In a post on X, the ministry urged shoppers to make “rational decisions about toilet paper purchases based on accurate information”, in an attempt to head off a repeat of serious shortages experienced during the early days of the Covid-19 pandemic and during the Middle East “oil shock” in 1973, which ushered in an era of low growth for Japan’s previously booming economy.About 97% of toilet paper sold in Japan is manufactured domestically using recycled paper and pulp, the Japan Household Paper Industry Association said, adding that the industry was not dependent on materials from the Middle East.The association, which represents 41 firms that make toilet paper and other household sanitary paper products, said in a statement there were “no problems with the procurement, manufacturing and supply of raw materials”, adding that its members would be able to increase output if necessary.That hasn’t prevented alarmist posts on social media, however. One X user wrote: “We’d better buy toilet paper before the price skyrockets due to the surge in oil prices, or we’re in big trouble.”Another speculated that groundless fears meant a toilet paper shortage could become a self-fulfilling prophecy: “If people panic and buy in bulk thinking supplies will run out, the shelves will temporarily be empty.” Other posts claimed their local stores had run out of toilet paper, while others showed people stockpiling essentials such as cat food, toiletries and even beer.The Mainichi Shimbun quoted the paper association’s head, Morio Ishizuka, as saying: “Please buy only the usual amount you need. We ask everyone to share information calmly so as not to fuel anxiety.”