Monday, November 29

The third largest economy in the world.. Japan is considering using its oil reserves to face the rise in oil prices for the first time

Japanese Prime Minister Fumio Kishida said on Saturday that his government is considering using large quantities of oil from its reserves to counter the rise in crude oil prices, Kyodo News Agency reported.

Kyodo said that would be the first time Japan had used its oil reserves to drive down prices, even though the country had previously tapped its reserves to cope with natural disasters and geopolitical risks.

The government of US President Joe Biden urged some of the world’s largest economies to consider releasing large quantities of oil from their strategic reserves to stem the rise in energy prices.

These calls include asking China for the first time to consider releasing crude stocks.

The Biden government is facing a decline in approval ratings and a rise in gasoline prices.

The White House said on Friday that the Organization of the Petroleum Exporting Countries (OPEC) must meet global demand for oil with “adequate” supplies when it holds its next meeting on production policy on the second of December.

international format

“We continue to look at what we can do on the basis that Japan will coordinate with the United States and other relevant countries,” Kyodo quoted Kishida as telling reporters.

The Japanese government’s chief adviser, Hirokazu Matsuno, said on Thursday that Tokyo is closely following the impact of high oil prices on its economy, which is the third largest in the world.

“While we call on oil-producing countries to increase production, we will strive to stabilize energy markets in coordination with major consuming countries and international organizations,” such as the International Energy Agency, Matsuno said.

Resource-poor Japan gets the bulk of its oil from the Middle East, and an increase in oil prices in recent days and a weak yen have pushed up the cost of imports, dealing a double whammy to the trade-reliant country.

motivation plan

The Kishida government on Friday unveiled a $490 billion stimulus plan, including measures to counter rising oil prices.

The government intends to support oil refineries in the hope of stopping the increase in wholesale prices for gasoline and fuel, to ease the burdens caused by high oil prices on families and companies.

“What is important is to urge oil-producing countries to increase production… We will take concrete measures after identifying the sectors of industry that have been affected,” Kishida said last month after discussions with members of the government.

oil prices

Oil prices fell by about 3% below $ 80 a barrel yesterday, Friday, as a new increase in “Covid-19” cases in Europe threatened to slow the pace of economic recovery, while investors are studying the possibilities of moving the major world economies to withdraw from their strategic stocks of crude to calm energy prices.

Brent crude futures settled down $2.35, or 2.9 percent, at $78.89 a barrel.

West Texas Intermediate crude futures for December delivery fell $2.91, or 3.6 percent, to settle at $76.10 a barrel.

And the price of crude contracts for January delivery fell 2.65 dollars, or 3.4%, to $ 75.78 a barrel.

The two benchmarks incurred losses for the fourth consecutive week, for the first time since March 2020.

Brent crude has risen about 60% this year as economies recover from the pandemic and with the Organization of Petroleum Exporting Countries (OPEC) and its allies – known as OPEC Plus – gradually increasing production.

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Reference-www.aljazeera.net

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