Japan's minister claims that Europe has done Tokyo a favor by releasing oil stocks.

Ryosei Acazawa, Japan's Minister of Industry, said that Europe did Japan a favor by agreeing to a joint release of oil stockpiles this week in order to reduce the price spikes and'supply crisis' caused by the Iran War. The International Energy Agency agreed on Wednesday to release a record number of 400 million barrels from strategic oil stockpiles in order to combat a rise in global crude prices following the U.S. - Israel war against Iran that began on February 28. Japan, a G7 country that relies 90% on Middle Eastern oil, has announced it will release?80m barrels of oil from its national and private reserves starting March 16.

Akazawa, on the sidelines of a Ministerial and Business Forum on Indo-Pacific Energy Security in 'Tokyo, said that Japan had changed the minds of European Leaders who were initially hesitant to release oil stocks because their dependence on the Strait of Hormuz 'is smaller.

"We understand this is Europe's return for the favor that Japan did to help Europe during a difficult period in the Ukraine crisis of 2022," he stated, referring the spike in oil prices and the supply crisis that followed Russia's invasion in Ukraine four years earlier. Japan has since stopped purchasing oil from Russia and increased its liquefied gas imports, which now account for around 6% of Japan's total. Japanese companies are also increasing their exposure to U.S. Energy. The countries are talking about possible Japaneseparticipation in the $44 billion Alaska LNG project and nuclear power cooperation, ?among other areas, as the U.S. looks to increase its energy sales to its allies. U.S. energy and industrial officials met in Tokyo over the weekend for IPEM. This was a U.S. "National Energy Dominance Council", led by President Donald Trump, to promote investment in Japan and Asia.

U.S. Interior Secretary Doug Burgum opened the event on Saturday.

"Whether it's the geographic strait of the Middle East or a control over supply, we need a reliable, affordable and secure supply. This means from partners that you can trust and who will not hold you hostage financially around any of these factors." (Reporting and editing by Stephen Coates; Yuka Obayashi, Katya Golubkova)

(source: Reuters)