Japan to sell 36 million barrels from reserves in May

Japan will release 36 million barrels from its strategic petroleum reserves in May, officials announced. At Japan's current daily consumption of about 1.8 million barrels, the quantity equals roughly 20 days of supply. The government indicated the sale will proceed after procedural decisions are finalized by the end of April.

The May release follows an earlier distribution in March, when Tokyo put about 50 days' worth of oil onto the market. Authorities have described the timing and scale in operational terms and are preparing steps for distribution.

Officials described the pricing for the May sale as “still under review” to take account of “market trends.” The March distribution used official selling prices from February to set the sale price; authorities are reviewing market conditions before setting the price for the upcoming tranche.

Details on how barrels will be allocated to buyers and whether the government will sell directly or use intermediaries remain undecided. Officials plan to announce specific allocation mechanisms and the sale timetable once the plan is finalized at the end of April.

Japan maintains strategic petroleum reserves to support energy security and respond to supply disruptions. The March release and the planned May sale are recent draws from those reserves.