Wednesday, April 24, 2024
HomeBusinessJapan PM confirms oil reserves may be released to curb prices By...

Japan PM confirms oil reserves may be released to curb prices By Reuters

Date:

Related stories

Transforming Spaces with Elegance and Functionality

In the region of indoor format, curtains play a...

What is Ultrasonic Technology?

At its coronary heart, ultrasonic generation is all approximately...

Dive Deeper into Penetration Testing

The significance of penetration testing companies is undeniable due...

Buying Real Estate: Cash Or Financing- New England Home Buyers

You’re ready to buy your first rental property. One...

The Luck of the Draw: Gambling Superstitions and Rituals from Across the Globe

Gambling is one of the most superstition-laden activities in...

[ad_1]

2/2
© Reuters. FILE PHOTO: A branch of Cosmo Energy Holdings’ Cosmo Oil service station is seen in Tokyo, Japan, December 17, 2015. Picture taken December 17, 2015. REUTERS/Yuya Shino

2/2

By Tetsushi Kajimoto

TOKYO (Reuters) -Japan is considering releasing oil from its reserves for the first time to curb surging oil prices, Kyodo news agency reported on Saturday, as Prime Minister Fumio Kishida signalled his readiness to counter oil price hikes following a request from the United States.

However, Japan may struggle to justify such a move, as under its own laws the country can release reserves only at a time of supply constraints or natural disasters, but not to lower prices.

The U.S. administration of President Joe Biden, who faces falling approval ratings and higher gasoline prices, has pressed https://www.reuters.com/business/energy/asia-looks-spr-shock-treatment-high-oil-prices-after-us-request-2021-11-18 some of the world’s biggest economies to consider releasing oil from their strategic reserves to quell high energy prices.

The requests include asking China for the first time to consider releasing stocks of crude.

“We’re proceeding with consideration as to what we can do legally on the premise that Japan will coordinate with the United States and other countries concerned,” Kishida told reporters.

“We want to draw a conclusion after thoroughly considering the situation each country faces and what Japan can do.”

Japan has tapped its reserves in the past to deal with the fallout of the Gulf War in the early 1990s and the deadly earthquake and tsunami in 2011.

Chief Cabinet Secretary Hirokazu Matsuno said on Thursday that Tokyo was closely watching the impact of rising oil prices on the world’s third-biggest economy.

See also  German conservatives, social democrats tied in vote to decide Merkel successor By Reuters

“While urging oil-producing nations to ramp up oil output, we will strive to stabilise energy markets by coordinating with major consumer nations and international organisations such as IEA (the International Energy Agency),” Matsuno said.

Resource-poor Japan gets the vast majority of its oil from the Middle East. Recent surging oil prices and a weakening yen are driving up the cost of imports, dealing a double blow to a trade-dependent nation.

Kishida’s government on Friday unveiled a record $490 billion stimulus plan including measures to counter higher oil prices. It plans to subsidise oil refiners in the hope of capping wholesale gasoline and fuel prices to ease the pain to households and firms from rising oil costs.

“What’s important is to urge oil-producing countries to ramp up oil production,” Kishida said last month after discussions with cabinet ministers. “We will arrange concrete measures after confirming what industry sectors are being affected.”

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

See also  6 Tips To Improve Workflow Productivity In The Office



[ad_2]

Source link

Bellie Brown
Bellie Brownhttps://businesstimes.org
Hi my lovely readers, I am Bellie brown editor and writer of Businesstimes.org. I write blogs on various niches such as business, technology, lifestyle., health, entertainment, etc as well as manage the daily reports of the website. I am very addicted to my work which makes me keen on reading and writing on the very latest and trending topics. One can check my more writings by visiting Cleartips.net

Latest stories