Prime Minister Kishida said, "Japan, in coordination with the United States, has decided to put up for sale a portion of the state reserve." said.
PRICE STABILITY
He underlined that the stability of crude oil prices is very important for economic recovery in the face of the coronavirus epidemic.
In line with the decision, it was reported that the government will introduce several million barrels from the state reserve to the market in the first stage.
"CRUDE OIL IS OPENING"
Public broadcaster NHK reported that "It is not common in Japan that the government opens crude oil to use when renewing its reserves, and that it is not common to open the state reserve to extensive use for market price stability."
Kyodo agency reported that the Japanese government has opened its reserve for use 5 times so far, including on the eve of the Gulf War and after the March 2011 Fukushima nuclear disaster.
It is known that 90 percent of Japan's consumption, which started to hold its crude oil reserves in the 1970s, is dependent on oil-producing Middle Eastern countries.
The USA President Joe Biden announced the previous day that he would make 50 million barrels of crude oil available from the reserve. "This action will help us deal with the lack of supply, thereby lowering prices," Biden said of making oil available. he said.
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