Akazawa: will take necessary measures to respond to oil prices

Japan’s Minister of Economy, Trade, and Industry, Ryosei Akazawa, stated Tuesday that the country supports coordinated measures by International Energy Agency (IEA) member nations to address surging oil prices driven by escalating tensions in the Middle East. Speaking ahead of a virtual G7 energy ministers’ meeting, Akazawa emphasized that a potential release of strategic oil reserves could stabilize global markets, particularly as crude prices climbed above $119 per barrel—the highest level since June 2022.

The G7 energy ministers reaffirmed their readiness to implement necessary actions, including drawing down emergency stockpiles, to mitigate supply disruptions. IEA Executive Director Fatih Birol noted an upcoming extraordinary meeting of IEA members to assess market conditions and determine whether to deploy collective reserves, which currently total over 1.2 billion barrels globally. The U.S. and Japan alone hold 700 million barrels of public emergency reserves.

Akazawa highlighted Japan’s reliance on Middle Eastern oil imports and reiterated the importance of international cooperation to address supply risks. The discussions follow a G7 finance ministers’ meeting earlier in the week, where similar concerns were raised. Birol underscored the "significant and growing risks" facing oil markets amid regional conflicts and shipping uncertainties.

The last IEA-coordinated reserve release occurred in 2022 following Russia’s invasion of Ukraine. With geopolitical tensions persisting, stakeholders are monitoring policy responses to curb price volatility while ensuring energy security.