Japan is pushing Saudi Arabia and other oil-producing countries to raise supply in order to stabilise the global oil market, according to the top cabinet secretary, since rising fuel costs due to the Israel-Hamas war endanger the global economy.
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Japan, the world’s fourth-largest crude customer, imported 2.70 million barrels per day last year, with the Middle East accounting for more than 90 per cent of the total. Its primary suppliers are Saudi Arabia, the United Arab Emirates, and Kuwait.
After Hamas attacked Israel on 7 October, killing hundreds, Israel launched a huge military assault on Gaza, putting Japan, a US ally, in a sensitive diplomatic situation given its reliance on Middle Eastern resources.
“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.
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Benchmark Brent crude oil futures have jumped by over $5 per barrel since the conflict began, but they eased on Thursday 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 has visited Gulf countries in July – spoke to Saudi Crown Prince Mohammed bin Salman on Wednesday 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.”
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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.
