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Japan Ramps Up Energy Security With Reserve Oil Sale and Diplomatic Push

The government is tapping national oil stockpiles to bolster refiners, reducing exposure to Middle East shocks.

Overview

  • Energy officials opened the Shibushi reserve to tankers in a public handover, launching an extra sale of about 5.8 million kiloliters to four major refiners for roughly ¥540 billion.
  • The new draw follows an initial release in March tied to Iran-related risks and covers close to 20 days of domestic oil use to steady supply to the market.
  • A wave of ruling LDP visits to the Philippines, Nigeria, and India is focused on energy cooperation and broader resource ties to diversify fuel sources.
  • In Kazakhstan, senior LDP figure Yasunori Nishimura is backing INPEX’s plan to prioritize sales of Kazakh crude to Japanese buyers, with a U.S. stop next to meet oil executives in Houston.
  • Parliament-to-parliament outreach to China has cooled, and a planned friendship delegation to Beijing was dropped, leaving only business-focused meetings during a brief Beijing stop.