Japan’s latest oil data is set to show demand last year fell by its most in 28 years, the fourth straight yearly decline, due to a deep recession and industrial users increasingly diversifying energy sources. A drop in sales has been expected.

Japan’s oil consumption has been steadily falling for years as its
population shrinks and the use of fuel efficient technology and greener
energy sources steadily rises.? But the data due out later this month
looks to show further demand destruction. That could erode oil prices
that hit a 15-month high this week, with tepid economic growth expected
for the world’s second-largest economy in 2010.? Government data for
December and all of 2009, set to be released on Jan. 29, is expected to
show a fall of about 7 percent in refined product sales, Reuters
projections based on trade ministry and separate industry data showed.?
That would be the biggest fall since 1981, when oil demand fell 7.49
percent, data from Japan’s Ministry of Economy, Trade and Industry
(METI) shows. IEE Japan, the country’s top energy forecaster, projected
late last month that total petroleum product sales in the fiscal year
ending in March would fall 3.2 percent, although the decline would slow
to 2.6 percent the following year. “The rate of decline in 2010
shouldn’t be as steep since the degree of the fall will likely be
curbed by the modest economic growth projected for the year,” said
Osamu Fujisawa, an oil economist at industry consultants FE
Associates.? Monthly statistics for December are expected to show a
fall of about 4 percent in oil product sales to around 18 million
kilolitres or about 3.65 barrels per day (bpd), marking the fifth month
in a row of sales declines. For December sales projections of various
products, see table below.

2009 GASOLINE DEMAND SEEN FLAT

?Sales of gasoline, which accounts for over a quarter of demand, look
to have been steady last year despite a government measure last spring
that cut highway tolls on weekends and some public holidays, leading
many drivers to hit the roads.? “Gasoline demand was firm from late
spring to early autumn as people took advantage of the toll cuts, but
it was not strong enough to offset the fall in consumer spending that
lead to poor sales for the other parts of the year,” Fujisawa said.?
The world’s third-largest oil consuming nation crawled out of its worst
recession in decades in the second quarter of last year, but economic
growth since then has been slow, leading both individuals and industry
to limit their energy use.? The fall in refined product demand for 2009
is expected to be most apparent in sales of fuel oil, often used by
electricity generators to meet sudden demand spikes and power outages.?
The amount of fuel oil consumed by utilities in the archipelago between
January-November last year plunged by almost half from the previous
year, according to data from the Japan’s Federation of Electric Power
Companies.? Top power firm Tokyo Electric Power Co restarted two of the
seven reactors at its Kashiwazaki-Kariwa nuclear plant, after it was
forced to shut the entire complex following a major earthquake in 2007,
curbing its thermal fuel needs.? Oil product sales have also taken a
hit as many domestic industries from photo film makers to paper
manufacturers have switched to environment-friendly natural gas for
fuel for their plant’s boilers.? Contracting oil demand has forced
Japanese refiners to cope and adapt, with some, like Showa Shell Sekiyu
KK, investing more heavily in other areas, like solar power, while
others consolidate.? Japan’s top oil refiner, Nippon Oil Corp, will
merge with miner and refiner Nippon Mining Holdings in April. Last
month the two firms announced details of plans to cut refining capacity
by 400,000 bpd by March 2011. Below are Reuters projections for
percentage changes in sales of selected oil products for last month
compared with a year earlier, based on industry data as well as the
actual METI figures for November.

Source: Reuters

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• Japan November the sale of oil expected to increase by 7 percent

    Japanese oil demand likely fell around 7 percent in November, the sharpest year-on-year decline in four months, pressured by continued weakness in consumption of gasoline, fuel oil and kerosene, Reuters projections based on industry data showed on Wednesday.

• Japan November total oil sales fall 4.7 percent y / y

    Japan’s total oil product sales in November fell 4.7 percent from a year earlier, the first decline in two months, as sales of gasoline, kerosene and gas oil dropped, government data showed on Monday. The fall, which comes after a 1.8 percent rise in October, was narrower than a 7

• India is Jan oil product sales drop 1.6% y / y: Govt

    India’s January domestic oil product sales fell 1.6 percent year-on-year, dropping for the first time since May, as natural gas replaced liquid fuel and the growth in automotive fuels slowed down, official data showed. Sales in Asia’s third-largest consumer dipped at the start of the year, for which the International

• India: Nov oil product sales up 3.7 pc y / y: Government

    India’s domestic oil product sales in November 2009 grew 3.7 per cent from a year ago, driven by higher demand for auto fuels, government data showed on Monday. Petrol sales during the month grew 11.1 per cent as car sales surged 61 per cent in November. Diesel sales rose 5.6

• Singapore November bunker sales -7.7 percent vs. October

    Marine fuel sales in Singapore fell to its second-lowest level this year in November, down 7.7 percent from the previous month, government data showed on Monday. Bunker sales in the world’s top bunker port stood at 2.882 million tonnes last month, down from October’s 3.122 million tonnes, and about 10.7

• Singapore July bunker sales 3.8%

    Singapore’s bunkering sector has recorded marine fuel sales of more than 20 million metric tonnes (mt) for the first seven months this year, after July figures saw an increase from the previous month. July bunker sales were up 3.8% from June to 3.0726 million mt, bolstered by sales of 380 centistoke

• India July oil product sales rose 3.6 percent y / y

    India’s domestic oil products sales rose 3.6 percent in July from a year ago to 10.94 million tonnes, led by higher sales of petrol and diesel, government data showed on Tuesday. Crude oil imports excluding purchases for Reliance Industries’ (RELI.BO) new refinery declined 16 percent to about 10 mln tonnes. In June,

• India July oil product sales rose 3.6 percent y / y

    India’s domestic oil products sales rose 3.6 percent in July from a year ago to 10.94 million tonnes, led by higher sales of petrol and diesel, government data showed on Tuesday. Crude oil imports excluding purchases for Reliance Industries’ (RELI.BO) new refinery declined 16 percent to about 10 mln tonnes. In June,

• Shipment of vehicles continues to decline

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• India: Petroleum products sales in August rose by 6.2%

    Oil products consumption in August saw a 6.2 per cent growth against the same month last year. The growth was triggered by an increase in demand of mass consumed products such as LPG, petrol, and diesel, as well as bitumen and jet fuel. The Government data showed that domestic sales of

• Robust Japan the August sale of oil is not likely to stop

    A jump in gasoline sales has driven unexpectedly strong Japanese oil product demand growth in August but recent inventory data and refining plans suggest the trend will not continue into autumn. Demand in the world’s third-largest oil consumer nation has been falling for several years due to the country’s greying population

• China major fuel stocks by 2.4 percent in December

    Combined stocks of gasoline, diesel and kerosene held by China’s top two oil companies rose by 2.4 percent in December from November despite an 8.7 percent rise in domestic sales, an industry official with knowledge of the data told Reuters on Monday. The rise in refined fuel inventories held by

• India: Fuel consumption jumped 12% in October

    India’s fuel consumption soared 12 per cent in October, the highest growth rate this fiscal, on back of a surge in demand for auto fuels — petrol and diesel.

• South Korea shares up on LNG

    South Korean liquefied natural gas inventories held by state-owned KOGAS were up 41% at end-July from a year ago, but declined 12% from the previous month, data showed yesterday. Commercial inventories, excluding the very small volume held by private importers, stood at 2.270 million tonnes at the end of July versus 1.611

• Decline slowed in sailboat sales

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