Japan is urging Saudi Arabia and other oil producing nations to increase supplies to stabilize the global oil market, the chief cabinet secretary said on Oct. 19 as rising fuel prices amid the Israel-Hamas conflict threaten to impact the global economy.
Japan, the world's fourth-largest crude buyer, imported 2.70 MMbbl/d last year, of which over 90% came from the Middle East. Saudi Arabia, the United Arab Emirates and Kuwait are its main suppliers.
Israel has started a massive military assault on Gaza after Hamas attacked Israel on Oct. 7, killing hundreds, and the conflict has put Japan, a U.S. ally, in a delicate diplomatic position given its dependence on the Middle Eastern fuels.
"Government of Japan will urge oil producing countries to stabilize the global crude oil market by increasing production and investing in production capacity," Hirokazu Matsuno, chief cabinet secretary, told reporters.
Benchmark Brent crude oil futures have jumped by over $5/bbl since the conflict began, but they eased on Oct. 19 after the Organization of the Petroleum Exporting Countries indicated it did not plan to immediately act on OPEC member Iran's call for an oil embargo on Israel.
Japanese Prime Minister Fumio Kishida-who who visited Gulf countries in July-spoke to Saudi Crown Prince Mohammed bin Salman on Oct. 18 about improving humanitarian conditions in Gaza and helping to ease tensions.
Matsuno said Kishida and the Saudi crown prince did not discuss stabilization of the crude oil market but added: "I am requesting relevant countries, including Saudi Arabia, to seize various opportunities and play a leading role in stabilizing the global crude oil market, including further increasing production."
Japan is a member of the International Energy Agency, and has in the past released oil reserves to meet major supply disruptions. It last did so in 2022 in the wake of the Russian invasion of Ukraine.
Recommended Reading
Solaris Stock Jumps 40% On $200MM Acquisition of Distributed Power Provider
2024-07-11 - With the acquisition of distributed power provider Mobile Energy Rentals, oilfield services player Solaris sees opportunity to grow in industries outside of the oil patch—data centers, in particular.
Halliburton Sees NAM Activity Rebound in ‘25 After M&A Dust Settles
2024-07-19 - Halliburton said a softer North American market was affected by E&Ps integrating assets from recent M&A as the company continues to see international markets boosting the company’s bottom line.
China Not Continuing Mega Oil-backed Loans to Latin America
2024-06-18 - China, which lent around US$120 billion to Latin America and the Caribbean between 2005-2023, isn’t expected to resume the mega oil-backing loans of yesteryear as the focus turns to debt negotiations.
Halliburton Working to Assess Cause, Impacts of Cyberattack
2024-08-22 - A Halliburton spokesperson said the company had activated a response plan and was working internally and with external experts to remediate the “issue.”
Talos Ups Buybacks, Pays Down Debt Post $1.29B QuarterNorth Deal
2024-07-22 - Talos Energy said it repaid $325 million in debt since closing its $1.29 billion cash-and-stock acquisition of E&P QuarterNorth in March.