Japan Urges Saudi Arabia to Stabilise Oil Production

Japan is pushing Saudi Arabia and other oil-producing countries to raise supplies in order to stabilize the global oil market, according to the chief cabinet secretary, since rising fuel costs due to the Israel-Hamas war endanger the global economy. The world's fourth-largest crude customer, imported 2.70 million barrels per day last year, with the Middle East accounting for more than 90% of the total. Its primary suppliers are Saudi Arabia, the United Arab Emirates, and Kuwait.

After Hamas attacked Israel on October 7, killing hundreds, Israel launched a huge military assault on Gaza, putting Japan, a US ally, in a sensitive diplomatic situation given its reliance on Middle Eastern resources.

"Government of Japan will urge oil producing countries to stabilize the global crude oil market by increasing production and investing in production capacity," Hirokazu Matsuno, chief cabinet secretary, told reporters.

Benchmark Brent crude oil prices have risen by more than $5 per barrel since the battle began, but they fell on Oct 19 as the Organisation of Petroleum Exporting Countries signaled that it did not intend to move soon on OPEC member Iran's proposal for an oil embargo against Israel. Fumio Kishida, the Japanese Prime Minister who visited the Gulf countries in July, spoke with Saudi Crown Prince Mohammed bin Salman on Wednesday about improving humanitarian conditions in Gaza and easing tensions.

Kishida and the Saudi crown prince did not discuss crude oil market stabilization, according to Matsuno, but he added: "I am requesting relevant countries, including Saudi Arabia, to seize various opportunities and play a leading role in stabilizing the global crude oil market, including further increasing production."