Japan sets Apr 8 for auction of oil from reserve

[TOKYO] Japan will hold an auction on Apr 8 to sell about 1.89 million barrels, or 300,000 kilolitres (kl), of crude oil in 1/3 sale from its national reserve, as part of a US-led coordinated release of reserves to cool rising prices.

The country's industry ministry said on Wednesday (Mar 16) the supply, to be taken from its Shirashima tank in southern Japan, will be available to winning bidders from May 20.

Japan said in November it would release "a few hundred thousand kilolitres" of oil in response to a US request, and the sale would be done as part of a switch in the composition of the types of oil held in the national reserve.

So far, the Japanese ministry has held 2 auctions in February and March to sell a total of about 360,000 kl, or 2.26 million barrels, of crude oil from its reserve.

The April auction will be the last round of the coordinated releases planned in November, the ministry said.

Separately, Japan said earlier this month that it would release 7.5 million barrels of oil from private reserves as a part of an International Energy Agency (IEA)-led coordinated release to compensate for supply disruptions following Russia's invasion of Ukraine.

Still, international oil prices stood at around US$100 a barrel as Russia's invasion of Ukraine continued to make investors worried about global energy supplies. REUTERS