Japan lowers level for private sector oil reserves

As Japan begins its long road to recovery from the recent earthquake and tsunami, the government has announced that it plans to lower the required level for legally mandated private sector oil reserves. In addition, the government will ask large manufacturing plants and other large users of electricity to conserve power so that the Tokyo Electric Power Company can reduce its rolling blackouts. Banri Kaieda, Minister of Economy, Trade and Industry (METI) said that oil wholesalers could reduce their required oil stockpiles from a 70- to a 67-day supply. This will be the fifth time in Japanese history that the government has released oil reserves. METI is also considering letting oil importers’ and trading companies’ oil reserves to fall below the legally mandated limit. (March 15, 2011)