Japan to auction over 600,000 barrels of oil from national reserves in February

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TOKYO, December 27 (Reuters) – Japan’s Ministry of Industry said on Monday it will hold an auction on February 9 to sell around 100,000 kiloliters, or 628,980 barrels, of crude oil from its national reserve in the part of a coordinated US-led release of oil reserves to curb rising prices.

The supply, which will be taken from its Shibushi tank in southwest Japan, will be available to the successful bidder on March 20 or later, he said in a statement.

The Japanese government said last month it would release “a few hundred thousand kiloliters” of oil in response to a US demand, and that the sale would come as part of a change in the makeup of the types of oil held. in the national reserve. Read more

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“This is the first round of releases planned and we will hold further auctions when we are ready and while we closely monitor international energy markets,” a ministry official told Reuters.

Global oil prices have fallen more than $ 5 a barrel since the ministry announced the plan in late November, as the spread of the Omicron coronavirus variant has raised fears that demand for fuel will decline.

But Industry Minister Koichi Hagiuda said earlier this month that Japan’s oil release plan remains unchanged despite the cut. Read more

The US Department of Energy announced earlier this month that it would sell 18 million barrels of oil from the Strategic Petroleum Reserve, with the companies’ takeover bids expected on Jan.4, as part of the statement. aimed at reducing fuel prices. Read more

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Reporting by Yuka Obayashi; Editing by Shri Navaratnam and Kenneth Maxwell

Our Standards: Thomson Reuters Trust Principles.

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