At the same time, the Minister of Economy, Trade and Industry Koichi Hagiuda did not specify the exact volume of oil and the timing of the sale.
Japan, under agreements with the United States, will sell several hundred thousand kiloliters of oil from strategic reserves in order to stabilize the market. This was stated on Wednesday at a press conference in Tokyo by the Minister of Economy, Trade, and Industry Koichi Hagiuda.
“It was decided to sell part of the oil from strategic reserves. The volume will be several hundred thousand kiloliters,” he said. In Japan, the unit of measurement of oil is a kiloliter (approximately 6.289 barrels). The minister did not specify the exact volume of oil and the timing of the sale, noting that these issues are still being worked out.
The Nikkei newspaper, citing sources, wrote that the volume of oil sold from reserves will be about 4.2 million barrels. The tender for the sale will be held before the end of the year, and the delivery itself will be carried out until March next year. The estimated volume of sales covers Japan’s needs within one to two days. At the same time, if necessary, Tokyo can release additional surpluses from reserves to the market.
The price of oil in Tokyo on Wednesday reached its highest since November 11. So, one kiloliter of Dubai crude oil for delivery in April next year is now worth 55,040 yen ($477 at the current exchange rate), which is about $26 higher than on Monday.