Japan to release oil stocks as US says buy American

Japan plans to start releasing oil from its stockpiles on Monday to soften the shock from the U.S.-Israeli war on Iran, a stark reminder of the oil crisis half a century ago that prompted Tokyo to create reserves.



As gasoline prices across Japan started to rise with the war disrupting supplies from the Gulf's Strait of Hormuz, Tokyo pledged to release a record 80 million barrels of oil, about 45 days of supply for the resource-poor nation.



The government has asked Japan's refiners to use the released crude, which will reduce the national reserves by 17%, to secure domestic supplies. It is not known how much of the oil will go to a global release of 400 million barrels being coordinated by the International Energy Agency to address the war's supply shock and price volatility.



Japan's release shows how seriously Tokyo views the disruption, said Yuriy Humber, CEO of Tokyo-based consultancy Yuri Group.



Any potential release from 12 million barrels jointly held in Japan by Saudi Arabia, United Arab Emirates and Kuwait would be in addition to the announced 80 million barrels, the Ministry of Economy, Trade and Industry says.