The chief cabinet secretary of Japan stated that the country is urging Saudi Arabia and other oil-producing nations to increase supplies in order to stabilize the global oil market. This action is being taken due to the rising fuel prices resulting from the Israel-Hamas conflict, which poses a threat to the global economy.
Japan, as the world’s fourth-largest crude buyer, heavily relies on oil imports, with over 90% coming from the Middle East, particularly from Saudi Arabia, the United Arab Emirates, and Kuwait. The conflict in the Middle East has put Japan, a US ally, in a delicate diplomatic situation due to its dependence on Middle Eastern oil.
Hirokazu Matsuno, the chief cabinet secretary, emphasized that the Japanese government will request oil-producing countries to stabilize the global crude oil market by increasing production and investing in production capacity.
It’s worth noting that benchmark Brent crude oil futures increased by over $5 per barrel since the conflict began but eased on Thursday after the Organization of the Petroleum Exporting Countries (OPEC) 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 recently spoke with Saudi Crown Prince Mohammed bin Salman to discuss improving humanitarian conditions in Gaza and helping ease tensions. While they did not discuss the stabilization of the crude oil market, Japan is requesting relevant countries, including Saudi Arabia, to take a leading role in stabilizing the global crude oil market, potentially by increasing production.
Japan is a member of the International Energy Agency and has released oil reserves in the past to address major supply disruptions, most recently in 2022 following the Russian invasion of Ukraine.
