Japan rules out new oil release after G7 coordination deal

Japanese Prime Minister Sanae Takaichi announced on Thursday that Tokyo has no plans for a fresh release from its petroleum reserves despite the Group of Seven agreeing to coordinate a 100-million-barrel drawdown to stabilize surging diesel prices. In a statement posted on social media platform X, Takaichi explained that Japan has already been releasing supplies from its reserves and would not undertake additional measures on this occasion.

The remarks followed an emergency virtual G7 meeting convened on October 2 by France, which currently holds the group's presidency, to address energy market volatility. Takaichi noted that the discussions centered particularly on responses to diesel prices in Europe and the United States against the backdrop of delays in European strategic reserve releases.

Diplomatic Representation

Japan was represented at the talks by Takehiro Endo, the country's G7 sherpa and deputy foreign minister, who was visiting Washington and coordinated the meeting directly, according to the prime minister. Takaichi added that British Prime Minister Keir Starmer attended through a proxy representative, while European Council President Antonio Costa was absent from the session.

Coordinated Release Framework

According to the G7 joint statement, the coordinated release through the International Energy Agency will begin immediately and continue for four months, including a substantial diesel drawdown within the first 20 days by members and partners. The group also pledged to coordinate refinery maintenance schedules, temporarily increase utilization where feasible and refrain from restricting energy exports between G7 countries.