Japan to tap strategic oil reserves to help ease post-Katrina shortfall

[Judi Lynn]

Japan to tap strategic oil reserves to help ease post-Katrina shortfall
(AFP)

3 September 2005


TOKYO - Japan said Saturday it would tap its strategic oil reserves for the first time in 14 years to cope with US supply disruptions in the aftermath of Hurricane Katrina.

Tokyo’s decision follows an agreement by the International Energy Agency (IEA) Friday that all 26 member states would pour 60 million barrels of oil into the global market in a month to deal with the supply shock.

Japan’s trade ministry said Tokyo’s oil release would amount to 12 percent of the total 60 million barrels, and that the government planned to free the oil reserves as soon as possible.

“We discussed with the IEA late yesterday the release of our strategic oil reserves, and the measure is to help ease the oil supply disruptions in the United States,” a trade ministry official said.
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[RC]

1. Whoa, wait a minute here.

Wouldn't that have a tendency to momentarily slow down the upward spiral of the price of oil? I wonder what bu$h has to say about this.
Maybe we can give some tax breaks to the oil companies in compensation for some lost obscene profits.

[Art_from_Ark]

2. Meanwhile, the price at the pump in Japan

is approximately the same as it was 14 years ago.