IEA expects Japanese oil demand to rise

The International Energy Agency (IEA) said that crude oil and fuel oil demand in Japan could rise in response to unease over the restarting of the country’s nuclear power reactors. The IEA said in its monthly report that “crude and fuel oil purchases may strengthen more than anticipated to meet peak demand.” Naoto Kan, Japan’s prime minister recently proposed new stress tests for all the country’s nuclear power plants, making it unclear as to when the undamaged nuclear power plants could be restarted. Currently, two thirds of the country’s nuclear power plants are not online. If demand for electricity rises, it is expected that Japanese refiners will have to import additional crude and heavy fuel oil. (July 13, 2011)