Japan PM says no additional oil reserve release after securing enough crude for June

Japanese Prime Minister Sanae Takaichi said May 12 that the country will not release additional oil reserves after securing sufficient crude oil for June.

"Based on the progress of alternative procurement, we expect to secure the necessary crude oil for June by utilizing the previously decided releases from reserves. Therefore, we have decided not to conduct a third release from the national reserves this month," Takaichi said at a ministerial meeting on the situation in the Middle East.

The prime minister's comments came as Japan is in the midst of releasing 20 days' worth of crude oil from its national oil reserves, totaling about 5.8 million kiloliters, or 36.5 million barrels, starting May 1.

At the meeting, the Ministry of Economy, Trade and Industry reported that Japan is on track to secure over 70% of its crude procurement for June, with procurement from the US expected to be about eight times higher year over year and double the amount procured in May.

Japan, however, will extend its measure allowing refiners and oil product importers to reduce private-sector reserve levels from the current 70 days to 55 days for another month, from May 16, thereby enabling a swift response through the use of more flexible private reserves.

The country's petroleum reserves were equivalent to 205 days of domestic consumption as of May 9, comprising 121 days in national oil reserves, 84 days in privately held reserves and one day in a joint crude oil storage program with oil-producing countries, according to the latest METI data released May 12.

METI Minister Ryosei Akazawa said earlier May 12 that Japan's alternative crude oil procurement will amount to about 1.4 million barrels/day in May, with the country making efforts to exceed this volume in June amid the ongoing conflict in the Middle East.

"For May, we have secured a confirmed basis of alternative procurement amounting to about 1.4 million b/d, which is roughly 60% of the previous year's volume. We are making every effort to exceed this amount in June as well," Akazawa told a press conference in Tokyo.

Akazawa added that Japan achieved an alternative crude procurement volume of "about 20% of the previous year" in April.

"Concerning Russian crude oil, our country remains committed to closely cooperating with the international community, including the G7, and maintaining policies of supporting Ukraine and continuing sanctions against Russia," Akazawa said.

"As for Iranian crude oil, it is necessary to monitor the progress of negotiations regarding Iran's nuclear issue and related sanctions. We will continue to pay close attention to developments in the Middle East and do our utmost to secure alternative procurement sources," he added.

Russia visit

Asked about Japan's reported delegation to Russia in May, Akazawa said there are no plans for the government to send an economic delegation to Russia for the purpose of cooperation after the conclusion of the Ukraine invasion or for energy cooperation, as reported recently in the media.

"Our country intends to continue implementing sanctions against Russia in coordination with the G7, and we are not in a situation to engage in new cooperation with Russia," Akazawa said. "On the other hand, it is necessary to protect the assets of Japanese companies that are still in Russia. Since the invasion of Ukraine, the Japanese government has been making intergovernmental representations and maintaining communication."

"As part of these efforts, arrangements are currently being made for Japanese government officials to visit Russia at the end of May, working in coordination with Japanese companies to communicate with the Russian side," he added. "We will refrain from disclosing detailed information about these negotiations from a diplomatic perspective, but in any case, the Japanese government is committed to firmly protecting the assets of Japanese companies that have already made entry into Russia."

The Japanese government has proposed a two-day visit from May 26 for representatives of major Japanese companies, including trading house Mitsui and shipping company Mitsui O.S.K. Lines, Kyodo News reported May 8, citing sources familiar with the matter.

Sakhalin Blend

The Voyager, carrying 750,377 barrels of Sakhalin Blend loaded from Russia's Prigorodnoye port, arrived at Kikuma, western Japan, on May 5, according to S&P Global Commodities at Sea data, marking Japan's first intake of Russian crude cargo since June 2025.

A spokesperson for Taiyo Oil confirmed that it received a cargo of Sakhalin Blend crude as part of its efforts to diversify crude oil procurement in response to the effective closure of the Strait of Hormuz, at the request of the Japanese government.

Prior to that, the last time Taiyo Oil received a cargo of Sakhalin Blend crude was in June 2025, when it received 600,000 barrels, the country's first delivery of Russian oil since early 2023.

Sakhalin Blend is a light, sweet crude produced as a by-product of LNG production from the Sakhalin-2 project, managed by Sakhalin Energy, which is majority owned by Russia's state-owned Gazprom. Minority stakes are held by Japan's Mitsui & Co. and Mitsubishi Corp.

Shipments of Sakhalin Blend to Japan are not subject to the G7 price cap on Russian oil because they are critical to maintaining stable LNG production from the project.

The US has also exempted crude oil under the Sakhalin-2 project from sanctions. In late 2025, the US Treasury's Office of Foreign Assets Control said the exemption for Japan's maritime transport of crude oil from the project for imports into the country had been extended to June 18, 2026.