Business | Oil & Gas
Japanese refiners extend output cuts as economic slump worsens
Refiners in Japan, the world's third-largest oil consumer, are cutting output this month and probably in January to cope with bigger declines in fuel demand at home and abroad as the global econ-omic slowdown worsens.
- Bloomberg
- Published: 23:16 December 3, 2008
Tokyo: Refiners in Japan, the world's third-largest oil consumer, are cutting output this month and probably in January to cope with bigger declines in fuel demand at home and abroad as the global econ-omic slowdown worsens.
Nippon Oil Corp plans to cut processing this month by 18 per cent from a year ago after slashing the run rate by 25 per cent in November, Japan's largest refiner announced on November 27. The firm has operated at reduced rates since June. Idemitsu Kosan Co. and Showa Shell Sekiyu K.K. will also cut December production.
Consumers and industrial users are delaying fuel purchases because they expect prices will drop in line with the declining trend of crude oil futures. Demand, already weak in Japan, has been damped further by the slowdown as many factories cut operating rates and shipping lines cut container services.
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