Japan Eyes Reserve Release as Oil Supplies Remain Tight

The Japanese government is reportedly considering releasing an additional amount of oil from its reserves. According to sources, this release could be as early as May and would provide about 20 days' worth of oil. Japan had previously released oil from its reserves in two stages, with the first stage providing around 45 days' worth of oil based on domestic demand, and the second stage providing approximately 30 days' worth.

This latest move might require coordination with the International Energy Agency (IEA), but Japan's significant buffer of oil before the US-Iran conflict makes this decision seem justified. The country had around 254 days' worth of oil in reserve at that time, which is now looking well-justified given the scenario.