Joint release of oil reserves a move to stem rising prices
The rise in crude oil prices, which has been a disrupting factor in the global economy, must be stopped.
The International Energy Agency, which comprises 28 nations including Japan and the United States, has decided to release some of its members' stockpiles of crude and oil products in concert.
Member nations will release a total of 60 million barrels over a month. Following the IEA decision, the U.S. government decided to release 30 million barrels of crude oil, and the Japanese government announced it would release 7.9 million barrels of gasoline and other oil products.
The benchmark price on the New York crude oil market has soared since this spring, rising above 100 dollars per barrel. Following consuming nations' decision to release reserves, however, the price briefly plunged below 90 dollars.
The IEA decision thus apparently put pressure on the market prices of crude oil. It also is believed to have reduced the flow of speculative investment funds into crude oil markets.
The amount to be released accounts for only about 2 percent of the world's daily demand for crude oil.
But it is of great significance that member nations united to take joint action. We expect the move to help curb overheated market prices.
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Unrest cuts into supply
Recent rises in crude oil prices are primarily caused by the narrow margin between demand and supply resulting from such factors as political unrest in Middle East and North African nations and growing demand in newly emerging countries.
But the Organization of the Petroleum Exporting Countries, comprising major oil-producing nations in the Middle East and elsewhere, has been lowering its production ceiling since the 2008 financial crisis.
Consuming nations' hopes were disappointed at the OPEC general meeting early this month. While such moderate nations as Saudi Arabia and Qatar called for an increase in output, Iran, Venezuela and other countries opposed it. The OPEC ultimately decided not to raise the current output level.
Iran and some other nations want high crude oil prices, which would allow them to secure oil revenues without increasing the output ceiling.
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Economies threatened
If crude oil prices remain high, they likely will drag down the U.S. and European economies, the outlook for which is uncertain. Such a situation in the global economy also would negatively affect oil-producing nations.
If demand for oil decreases further and moves to promote energy-saving measures accelerate in consuming nations, this, too, would be a setback for oil-producing countries.
OPEC is expected to hold another round of discussions on the production target in the near future, but a key point is whether member nations can unite to push for higher production.
We urge OPEC to increase its output, taking into account such various factors as market trends and developments in consuming nations.
It is important for Japan to secure a stable supply of crude oil as the nation faces the daunting task of recovering from the Great East Japan Earthquake and reviving it's ailing economy.
The nation must strengthen cooperation with IEA members, to pressure OPEC to beef up its production.
U.S. withdrawal mustn't jeopardize Afghan security
At long last, a path toward ending a war that has continued for nearly a decade has started to emerge.
U.S. President Barack Obama has announced 10,000 troops will be withdrawn from Afghanistan by year's end, and that about 23,000 more will be pulled from the battlefield by the end of next summer.
The remaining 68,000 troops will be steadily brought home after that as power is transferred from U.S. forces to Afghan national security forces, Obama said in his announcement.
Such U.S. allies as Britain, Germany and France that have deployed troops in Afghanistan to bolster public order and security also plan to considerably reduce their personnel.
The phased withdrawal of U.S. troops must, above all else, be conducted under the major premise that public security is ensured in Afghanistan. We hope the withdrawal goes ahead while a close eye is kept on the realities on the ground in Afghanistan to ensure that country does not once again become a failed nation and hotbed of terrorism.
Of the two wars started by the administration of his predecessor, George W. Bush, Obama criticized the Iraq war as a "wrong war," and has pulled many U.S. combat troops from Iraq. However, Obama said military action against terrorists in Afghanistan is "necessary and just," and he sent additional troops to join the fighting there.
The start of the withdrawal suggests this "surge" has yielded some results.
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Obama focusing on reelection
Certainly, the offensive capability of the Taliban, the former rulers of Afghanistan, has been weakened. Afghan national security forces now have nearly 300,000 personnel and been handed responsibility for ensuring security in some areas.
The killing of Al-Qaida leader Osama bin Laden--the mastermind of the Sept. 11, 2001, terrorist attacks on the United States--at his hideout in Pakistan last month by U.S. special forces was a key factor in Obama's decision to start bringing troops home.
However, concerns remain about the withdrawal plan.
The U.S. public is becoming increasingly weary of the war. There is growing dissatisfaction and anxiety over the snowballing costs of the war, the faltering U.S. economy and the stubbornly high unemployment rate. Obama will focus more on domestic issues and rebuilding the United States than on other countries.
He also wants to avoid any deterioration of U.S. government finances as eyes begin to turn to the autumn 2012 presidential election.
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Make Japan aid effective
Some observers wonder if a hasty U.S. pullout could result in the Taliban regaining strength.
While maintaining military capabilities that can overwhelm Taliban forces, the United States should step up efforts to ensure public security in Afghanistan. To achieve this, Washington will need to strengthen the Afghan government and security forces, and boost cooperation with neighboring Pakistan in operations to stamp out terrorist elements.
Since the Democratic Party of Japan came to power in 2009, Japan's policy has been to help stabilize Afghanistan and surrounding areas through massive monetary aid, rather than contributions of personnel.
This monetary assistance, however, has produced meager results. The government must seriously consider how this money could be used more effectively.
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