TOKYO (Reuters), – Japan is looking at releasing oil from reserves to respond to rising prices. This was reported by Kyodo, a news agency that did not cite sources.

Japan will be the first country to tap its oil reserves to help lower the price of crude oil. But, Japan had previously done so when faced with geopolitical threats or natural disasters.

Officials from the government were unavailable for comment immediately.

The government of U.S. President Joe Biden, who faces falling approval ratings and higher gasoline prices, has pressed https://www.reuters.com/business/energy/asia-looks-spr-shock-treatment-high-oil-prices-after-us-request-2021-11-18 some of the world’s biggest economies to consider releasing oil from their strategic reserves to quell high energy prices.

These requests included asking China to release crude oil stocks for the first-time.

Japan reacted positively on the U.S.’s initial outreach about a potential coordinated reserve release, according to Reuters.

Hirokazu Matsuno Chief Cabinet Secretary, declined to make any comment Thursday on the U.S.-related requests.

Reporters were told by him that they will be closely watching how increasing crude oil prices affect the global energy market and Japan’s economy. While we urge oil-producing nations increase oil output, our goal is to stabilize the energy market by working with international organisations and major consumer countries,” said the International Energy Agency.

Japan is resource poor and gets most of its oil from Middle East. A weakening Japanese yen and recent surges in oil prices are leading to higher import costs, which is a double blow for a nation that depends on trade.

Fumio Kishhida, Prime Minister of Japan, unveiled Friday’s record $490 Billion stimulus plan that includes steps to reduce rising oil prices. The government plans to provide subsidies to oil refiners to help reduce gasoline prices and lower fuel costs. This will ease pressure on firms and households from the rising cost of oil.

Kishida, who spoke with cabinet ministers last month, stated: “It’s crucial to urge oil producing countries to boost oil production.” We will implement concrete measures once we confirm which industries are affected.