Kishida Announces Plan to Release State Oil Reserves

Politics Economy

Tokyo, Nov. 24 (Jiji Press)--Japan will release oil from its state reserves in a coordinated action with the United States and other countries to lower crude oil prices, Japanese Prime Minister Fumio Kishida said Wednesday.

"We've decided to sell part of our state oil reserves together with the United States in a way that is consistent with the oil reserves law," Kishida told reporters at the prime minister's office.

It will be the first time for Japan to tap its state oil reserves to respond to high oil prices. The government is considering conducting an auction as early as this year to sell several days' worth of oil from the reserves, sources familiar with the matter said.

Japan sells oil on Asia's spot market regularly to replace oil varieties in the reserves, according to the economy ministry. The government is considering a similar way to release oil flexibly, the sources said.

Kishida's announcement came after U.S. President Joe Biden said at the White House Tuesday that the United States will release oil from the Strategic Petroleum Reserve.

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