© Reuters. PHOTOS: Cosmo Energy Holdings’ Cosmo Oil service station is located in Tokyo, Japan, December 17, 2015. Photo taken December 17, 2015. REUTERS / Yuya Shino
TOKYO (Reuters) – The Japanese government is considering replacing oil prices because of rising prices, Kyodo news agency reported on Saturday, citing sources.
It would be the first time for Japan to release oil reserves due to lower prices, although the country has previously used such reserves in the face of natural disasters and global catastrophes, Kyodo said.
Officials were not immediately available for comment.
The government of U.S. President Joe Biden, who is facing declining licenses and rising oil prices, has forced https://www.reuters.com/business/energy/asia-looks-spr-shock-treatment-high-oil-prices – after-us-request-2021-11-18 some of the largest economies in the world to consider oil extraction in their storage facilities to reduce the high oil prices.
The request also includes asking China for the first time to consider exporting oil shares.
Japan has reacted to the US arrival in the first place by issuing possible alliances and was considering this, a source familiar with the matter told Reuters earlier.
Secretary-General of the Presidency Hirokazu Matsuno declined to comment Thursday on US requests, first made by Reuters.
“We will continue to take a closer look at how rising oil prices are affecting global electricity markets and the Japanese economy,” he told reporters. “While we encourage oil-producing countries to increase oil production, we will strive to establish energy markets in partnership with major oil retailers and international organizations,” such as the International Energy Agency.
Poor Japan is rich in oil from the Middle East. The recent rising oil prices and the depreciation of the yen raise the cost of imports, which is twice as damaging to the trading-dependent world.
The government of Prime Minister Fumio Kishida on Friday unveiled a plan to raise $ 490 billion including measures to curb rising oil prices. It plans to provide funding for oil refineries with the hope of raising oil and fuel prices to reduce pain in families and companies with higher oil prices.
“The key is to encourage oil-producing countries to increase oil prices,” Kishida said last month after holding talks with government ministers. “We will develop specific mechanisms once we have ensured that the shares of the companies are affected.”
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