Japan sets date for sale of oil from strategic reserves
Japan is to sell at auction 629,000 barrels of oil from strategic reserves, Reuters news agency reported, quoting Japan’s Economy, Trade and Industry Ministry. The oil will be supplied to the auction winner from its Shibushi tank in the south of the country in the period from 20th March to 30th June.

    The amount is comparable to the daily oil production of Venezuela – 620,000 barrels, according to Refinitiv data from November 2021.

    Japan’s oil reserves as of end-October 2021 stood at 490.4 million barrels – sufficient to meet domestic demand for 244 days, according to Japan’s Agency of Natural Resources and Energy.

    Sixty percent of that figure is accounted for by state reserves – made up of 285.9 million barrels of oil and 9 million barrels of oil products. The remaining 40 % is made up of private reserves (75.9 million and 108.8 million barrels respectively) and by reserves of Saudi Arabia and the United Arab Emirates located on Japanese territory (10.8 million barrels of oil).

    The Japanese government proceeded with the decision to release part of its strategic reserves following U.S. President Joe Biden’s announcement on 23rd November about Washington’s intention to release 50 million barrels of its reserves. Total reserves as of end-September stood at 617.8 million barrels, according to figures from the Energy Information Administration (EIA) of the U.S. Department of Energy.

    Alongside the United States and Japan, other countries announcing their intention to release part of their reserves include India, South Korea and Great Britain. A similar move was announced by China in September.

    The sale of parts of strategic reserves is aimed at cooling oil prices which, at the end of October, hit $86 a barrel for the first time in three years. The market was subject to a correction in November linked to the rapid spread of the Omicron variant of Covid and the risk of a surplus associated with increased production by OPEC+ countries.

    As a result, at the beginning of December, Brent futures on the ICE exchange dipped to $69 a barrel. But in recent weeks, the market was hit by a “rebound” – at the close of trade on 27th December, Brent reached $79 a barrel. As was the case at the close of 2020, as commodities markets were only beginning to recover, prices were bolstered by a general atmosphere of a pre-New Year rally.


Share on facebook
Share on telegram
Share on email
Share on twitter
Share on vk
Share on odnoklassniki
Share on reddit

Add comments

Your email address will not be published. Required fields are marked *

China has commissioned the last out of six units of the country’s largest NPP

China General Nuclear Power Corporation has completed test operation of the last out of six units at the Hongyanghe nuclear power plant (NPP) whose capacity has reached a national record level of 6.71 GW. The design power generation volume of the plant, which is the first NPP in China’s northeast, has increased up to 48 TWh, which is more than last year’s total generation in New Zealand (44 TWh, according to BP’s World Energy Survey).

read more ...

Malaysia’s shelf could become a CO2 storage hub

As reports the Nikkei Asia, a regional publication, Malaysian Petronas and Japanese Mitsui & Co. have signed a memorandum on a feasibility study for the project for CO2 storage in the depleted oil and gas fields offshore Malaysia. The carbon dioxide will potentially be supplied from the Mitsui & Co. power plants in Japan and South Korea.

read more ...

Scientists have found hot spots in the Arctic

The scientists of the Arctic and Antarctic Research Institute (AARI), as part of an international team of specialists, have analysed the satellite and ground-based data for 40 years and identified the hottest spots in the Arctic. According to the fundamental research results, warming in the Arctic is 2.5-3 times faster than on the whole planet. However, an exceptional temperature rise is recorded in the Barents Sea area.

read more ...


December 2021