Connect with us

Business

In a first, Japan considers release of oil reserves after US request: Sources

Published

on

Japan is considering the unprecedented release of state oil reserves after a request from Washington for coordinated action to combat soaring energy prices, three government sources with knowledge of the possible plan told Reuters.

For the latest headlines, follow our Google News channel online or via the app.

One of the sources said the government was looking into releasing from the portion exceeding the minimum amount required as a legal workaround. Japanese law permits the release of oil reserves in cases of a shortage or natural disasters but makes no mention of doing so to counter rising prices.

“We have no choice but to come up with something” after a request from the United States, another one of the sources told Reuters.

The sources declined to be identified because the plan has not been made public.

Japan has never released oil from its state reserves, while oil companies have done so during the 1991 Gulf War and following the 2011 earthquake and tsunami disasters.

Chief Cabinet Secretary Hirokazu Matsuno said on Monday nothing had been decided, while Prime Minister Fumio Kishida said on Saturday the government was in the process of considering what it could do legally.

The Biden administration made the unusual request to some of the world's largest oil-consuming nations – including China and India – to consider releasing oil from their strategic reserves after members of the Organization of Petroleum Exporting Countries and its allies repeatedly rebuffed its requests to speed up their production increases.

The Japanese government held 145 days' worth of daily petroleum consumption at the end of September, according to official data, well above the minimum 90 days required by law.

Private-sector reserves total 90 days' worth, also exceeding the minimum 70 days' requirement.

Read more:

OPEC secretary general expects oversupply in oil market next year

Brazil has no plans to join OPEC ‘at the moment:’ Minister

OPEC+ rejects Biden’s plea for bigger oil-supply increase

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Business

Saudi Aramco signs 50 agreements during IKTVA conference

Published

on

Saudi Aramco has signed 50 agreements during the sixth IKTVA (In-Kingdom Total Value Add Program) in Dhahran, the company said.

For the latest headlines, follow our Google News channel online or via the app.

The IKTVA program is part of the Kingdom’s drive to provide more local jobs and diversify the economy away from oil.

Read more:

Saudi Aramco to establish presence in China to focus on non-metals in construction

EIG-led investors in Aramco oil pipelines hire banks for dual-tranche bonds

Saudi Arabia FM meets Chinese counterpart to discuss regional security

Continue Reading

Business

Iraq schedules crude shipments for March loading amid strong demand: Official

Published

on

Iraq has already scheduled some oil shipments for loading in March due to projections of strong demand, Ali Nizar, deputy head of Iraq’s State Organization for Marketing of Oil (SOMO), told reporters on Sunday.

For the latest headlines, follow our Google News channel online or via the app.

On the subject of oil prices, Nizar said it was still too early to say if prices will exceed $100 per barrel, as some analysts have forecast.

Oil prices hit a seven-year high just above $89 a barrel on Wednesday. Any price increase will not last, Nizar said, but the Organization of the Petroleum Exporting Countries (OPEC) was taking the current fluctuations into consideration.

OPEC+, the group of producers comprising OPEC and allies including Russia, have aimed to raise output by 400,000 bpd a month but production has increased by less than that as some producers struggle to pump more, according to OPEC’s monthly report in January.

The market could need additional quantities of oil and OPEC+ will offer more to the market if needed, Nizar said. He added that Iraq’s average oil exports are expected to rise to 3.3 million barrels per day in February, from 3.2 million barrels per day in January.

Read more:

Global oil demand expected to remain ‘robust’ despite COVID omicron variant: OPEC

OPEC names Kuwait oil executive as secretary general

Libya’s oil-export woes deepen as weather takes out more ports

Continue Reading

Business

Saudi Arabia supports sustainability while ensuring global energy security: Al-Jadaan

Published

on

Saudi Arabia’s Minister of Finance Mohammed Al-Jadaan said on Friday that the Kingdom supports sustainability while ensuring energy security and the inevitability of moving to a green and sustainable global economy, “based on a flexible and thoughtful approach, to ensure energy security and economic stability in the long term.”

Al-Jadaan remarks came during his participation in the virtual panel discussion organized by the World Economic Forum, Davos Agenda under the title: Building Future Preparedness.

For the latest headlines, follow our Google News channel online or via the app.

He said the past two years have provided many lessons to build economic resilience and a better future preparedness, like the “the need for a bold, decisive, data driven action in risk mitigation, while balancing public health, social, and economic needs simultaneously,” according to a statement carried by the Saudi Press Agency (SPA).

Al-Jadaan said: “G20 agreed to form a joint task force from the ministries of health and finance to ensure the world is better prepared for the future, and it is important that we support these efforts,” pointing that the COVID-19 pandemic provided the world with a clear lesson that no country can fight the epidemic alone since any pandemic requires greater international cooperation.

The Minister of Finance also clarified that the transformation in the field of energy and sustainable development are two main factors to be able to build a resilient global economy, but the threat that is often ignored is the need to ensure energy security, so that the matter is not negatively affected by the transformation.

Al-Jadaan stressed that the “G20 is working with the World Bank, the International Monetary Fund and other multilateral institutions to find a way to better prepare for potential crises in the future by continuing structural reforms and managing risks, noting that in the past, it took years to produce vaccines, yet today, with collective cooperation, whether from the private sector or the government, we were able to deal well with the crisis, we were able to provide support to low-income countries and we were able to provide relief efforts in agreement with the G20 and Paris Club, while the International Monetary Fund (IMF) agreed to distribute the equivalent of $650 billion from its special drawing rights to support liquidity,” according to SPA.

Read more:

Saudi Finance Minister al-Jadaan calls for global action on coronavirus at G20 event

Lebanon to sign electricity deal with Jordan on Jan. 26: Minister Walid Fayad

Unit 2 of UAE’s Barakah nuclear plant to start operations within months: ENEC CEO

Continue Reading

Trending