Japan will release a few hundred thousand kilolitres of oil from its national reserve, but no date has been set, according to Koichi Hagiuda, the country's industry minister.
Following a request from the US, Japan's Prime Minister Fumio Kishida said his government will release some oil reserves in a method that does not violate a Japanese law that only authorises stock sales if there is a risk of supply disruption.
"We've been working with the US to help stabilise the international oil market, and we've decided to join them in selling a portion of our national oil reserves in a way that doesn't violate existing Japanese oil reserve law," Kishida said.
Officials from the Industry Ministry stated that the details were still being worked out. One kilolitre equals roughly 6.3 barrels of oil. It was previously estimated that Japan will auction about 4.2 million barrels of oil by the end of the year, which is roughly 666,666 kilolitres, or about one or two days' worth of demand.
The total national stockpile is around 490 million barrels. Kishida stated that Japan will continue to lobby oil-producing countries to combat drastic price swings.
Kishida's confirmation comes after the administration of US President Joe Biden announced on Tuesday that it will release millions of barrels of oil from strategic reserves in collaboration with China, India, South Korea, Japan, and the UK in an effort to cool rising crude prices after major global producers repeatedly ignored calls for more supply.
The US will release 50 million barrels under the coordinated plan, which is the equivalent of roughly two and a half days of US demand. Meanwhile, India announced a 5 million barrel release, while the UK announced a 1.5 million barrel voluntary release from privately held reserves.