| Tsunami Japanese influence, Oil Price Down Below U.S. $ 100 per Barrel |
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| Wednesday, 16 March 2011 09:20 | |||||||
Page 1 of 2 JAKARTA. The earthquake and tsunami that occurred last weekend in Japan helped push oil prices mintah type WTI delivery April 2011, to below U.S. $ 100 per barrel. In trading Tuesday (15 / 3) WTI oil prices back to touch U.S. $ 99.49 per barrel, while Brent crude oil for delivery in April 2011 also fell to a value of U.S. $ 113.52 per barrel.
Japan as the third largest energy consumer in the world after the United States and China, is expected in the near future will reduce their oil demand by more than a third of their domestic refineries closed because of damage caused by the earthquake. As reported by Bloomberg (14 / 3), Japanese oil companies, including Nippon Oil & Energy JX Corp.. and Cosmo Oil Co.. impaired at 7 refineries by the earthquake, with the potential loss of refinery products around 1.6 million barrels per day, or reaching one third of their total national refinery capacity. In the near future is expected Japanese demand for fossil fuels is reduced because of damage to infrastructure. However, these conditions will not last long, in the medium term we expect an increase in demand for LNG, oil and coal for the reconstruction of Japan. Japanese demand for fossil fuels will allegedly even higher than before, to replace the 9700 megawatts (MW) nuclear power plant damaged by the quake. This is expected to raise the price of Brent crude oil until the end of this year. Meanwhile, on the other hand, Libyan oil production has declined sharply. Oil giant, Total, said that the uncertainty of the situation in Libya has cut the country's production of 1.4 million barrels per day to under 300,000 barrels per day (ie, 14 / 3). Libyan oil production under normal conditions reached 1.6 million barrels per day. Saudi Arabia has contributed additional production to replace lost supplies from Libya since February 25, 2011. Besides Saudi Arabia, Kuwait is also committed to provide back-up production by 200 thousand barrels per day. (Energy and mineral resources)
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