TOKYO, Apr 23 (NNN-NHK) – Japan began procedures towards auctioning off 4.8 million barrels of crude oil from three state reserve bases yesterday, in a bid to stabilise the market, amid skyrocketing prices.
According to the Economy, Trade and Industry Ministry, an auction will be held on May 10, for the almost five million barrels of crude oil, which is part of nine million barrels of crude, Tokyo has decided to release from its national reserves.
The release from the national reserves will be the first since Japan introduced the scheme in 1978.
The oil will be available to the winning bidder on June 20 or later, local media reported yesterday.
Japanese Prime Minister, Fumio Kishida, pledged Japan will release 15 million barrels of oil reserves.
The move is in coordination with the International Energy Agency (IEA), which plans a joint release by its 31 members of 120 million barrels, to help stabilise markets.
“We will swiftly advance the necessary procedures for the rest of the reserves for the release,” Koichi Hagiuda, Japan’s Economy, Trade and Industry Minister, told a press conference yesterday.
The ministry said last week, six million barrels, one of the largest by Japan, from both private and state reserves, will be released to the market over a six-month period through Oct 8.– NNN-NHK
