Japan plans to reduce its mandatory minimum oil reserves held by refiners and other private-sector oil firms in a concerted action by the International Energy Agency, a senior official said Monday.

Releasing stocks of private-sector-held petroleum products, rather than crude oil reserves, in Japan would have "an immediate effect" on the tight oil supply situation in the global market, Vice Economy, Trade and Industry Minister Hideji Sugiyama said, according to Kyodo News.

Tokyo will decide on a concrete way for the oil discharge "as soon as possible," he said.

The IEA last week announced the daily discharge of 2 million barrels in response to interrupted oil supply caused by Hurricane Katrina,

Japan's private-sector oil firms are currently obliged to keep minimum oil stockpiles able to meet demand for 70 days and they have stocks for 79 days in total.

The government is planning to lower the minimum stockpile levels to increase petroleum product supplies, Sugiyama said.

Source: Xinhua