A senior official from Japan's Ministry of Economy, Trade and Industry stated on Wednesday that Japan plans to release approximately 36 million barrels from its national petroleum reserve starting in early May. Contracts with refiners concerning this release are expected to be finalized before the end of April.

Last week, Japanese Prime Minister Sanae Takaichi indicated that the ongoing conflict involving the U.S., Israel, and Iran is disrupting global energy transportation. To ensure stable domestic supply, Japan intends to release a petroleum reserve equivalent to 20 days of domestic consumption beginning in May, while also seeking to procure crude oil from regions outside the Middle East.

Japan had already begun unilaterally and jointly releasing petroleum reserves with other countries starting March 16. The initial planned release volume was sufficient for 50 days of domestic use. The additional 20-day volume now planned is an incremental measure on top of that.

According to Shigemi Hosokawa, Deputy Director-General of the Agency for Natural Resources and Energy's Emergency Response Office, Japan's average daily petroleum demand is about 1.8 million barrels. The total volume for the second round of the national emergency petroleum reserve release is projected to be around 36 million barrels.

Hosokawa noted that the method of release will be consistent with the first round, carried out through flexibly negotiated contracts with domestic refiners. Specific details are expected to be finalized by the end of April.

He mentioned that the pricing for the first reserve release was based on the official selling prices of oil-producing nations from February. Pricing for the next round is currently under review and will be determined based on subsequent market trends.

In response to data from the Petroleum Association of Japan showing domestic refinery utilization rates at only around 68% of designed capacity, Hosokawa commented that the figure is close to 70% and not particularly abnormal.