Japan’s oil imports drop by 12%

Japan’s energy imports fell in August as the economy continued to struggle. August marked the tenth straight month of decline. Crude and condensate imports were down 12% compared to the same period a year ago at 17.8 million kiloliters, or 3.6 million barrels a day, the Ministry of Finance said. The extent of the fall is expected to narrow from October, as Japan had begun sharply cutting imports since last October. During the winter months from December to February, Japan’s energy demand is typically affected more by the weather than the economy. Still, its crude demand is expected to struggle more compared with other sources like LNG, because heavy fuel oil use has been replaced by cleaner natural gas, while gasoline consumption is being slashed by energy efficient vehicles. In the same month, overall exports fell by 36% for the 11th consecutive month. (September 24, 2009)