TOKYO: Japan’s trade ministry on Thursday sold a total 4.15 million barrels (about 660,000 kilolitres) of crude from the government’s Strategic Petroleum Reserves as part of a plan to replace the oil with other grades, a ministry official said.
Japan has been trying to replace heavier crude in its national reserves with lighter grades to reflect the growing share of light crudes in imports.
Offered via tender were 1.89 million barrels (300,000 kl) of Egyptian Suez Blend crude to be delivered between July 21 and Oct. 5; 1.13 million barrels (180,000 kl) of Khafji crude to be delivered between July 1 and Aug. 23; and 1.13 million barrels (180,000 kl) of Khafji crude for sometime between July 30 and Aug. 23.
A ministry official said all the barrels have been sold but declined to comment on the buyers or prices. The government will buy back crude in future, but has not decided whether to buy back all the barrels sold during the current fiscal year ending next March, the official added.
Suez Blend crude is currently stored at the Shibushi national oil storage in Kagoshima, southern Japan. Khafji crude is stored at Tomakomai Eastern national storage base in Hokkaido, northern Japan.
The tender was not related to any emergency release coordinated by the International Energy Agency. Khafji crude is from the shared Neutral Zone between Saudi Arabia and Kuwait.
