As the Iran war escalates and disrupts the flow of oil and gas from the Middle East to the rest of the world, Japan and South Korea are among the first Asian countries to release strategic reserves to combat global energy disruption.
Asian countries are particularly vulnerable to oil supply disruptions because they rely on Gulf states for 60% of their crude oil, much of which is transported through the Strait of Hormuz, a key shipping route that has been effectively shut down by Iran.
The foreign exchange reserves of major Asian countries are as follows:
Prime Minister Sanae Takaichi announced that Japan will also release 80 million barrels of crude oil on Monday, equivalent to 45 days worth of reserves out of 254 days. The decision came before members of the International Energy Agency, including Japan, reached a historic agreement to release 400 million barrels of oil, their largest ever reserve.
South Korea has 208 days worth of oil reserves, and the South Korean government announced that it has secured an additional 6 million barrels of crude oil. The industry ministry also announced on Wednesday that it would release 22.46 million barrels of oil from reserves in line with the IEA’s decision, although the timing is still unclear.
China has about 1.2 billion barrels of crude oil, equivalent to about 203 days of oil imports from the Middle East, according to global trade analysis firm Kupler.
Taiwan maintains at least 90 days’ worth of legal reserves of crude oil, but only 11 days’ worth of liquefied natural gas (LNG). The government said it had secured sufficient LNG supplies for March and April and was working to secure supplies for May.
Alicia Garcia Herrero, chief Asia-Pacific economist at French financial services firm Nataxis, said India’s oil reserves are estimated at about 25 days’ worth.
According to the Indonesian government, Indonesia has approximately 21 days worth of oil reserves.
Thailand has 96 days worth of oil reserves, the country’s Energy Ministry said on Wednesday.
CNN’s Junko Ogura, Hanako Montgomery, Mike Valerio, Lea Mogul, Gowon Bae and Trista Kurniawan contributed reporting.
