Japan oil demand to fall 3% on weak fuel oil demand

Japan’s oil demand is likely to fall around 3% in the fiscal year ending March 2011 due to weak demand for fuel oil from industrial users, President of the Petroleum Association of Japan Akihiko Tembo said. Oil demand for the year ending March 2010 is estimated at 189.40 million kiloliters (1.19 billion barrels), he said. In the coming fiscal year, demand for gasoline is expected to slip 1%, while fuel oil demand is expected to slide 5-6%, he said. More industrial users in Japan have been switching from fuel oil to liquefied natural gas (LNG) as the latter is typically cheaper and more environmentally friendly, according to sources. (March 18, 2010)