Crude Oil Imports in Japan Drop in 2015 as Demand Slows

Crude Oil Imports in Japan Drop in 2015 as Demand Slows

Last year, crude oil imports from Japan dropped to its lowest level since 1988. The reason behind the drop in imports being low demand with introduction of more fuel efficient vehicles and lower population.

Japan imported 195.5 million kiloliters of oil which is close to 3.37 million barrels per day last year. The amount is 2.3 percent less than what the country had imported in the year earlier. The data from the Ministry of Finance showed on Monday that it is the lowest since 1988 when the country had imported 192.2 million kiloliters.

In 1999, the demand for oil in Japan reached its peak. However, the demand has declined as the population grew smaller and the auto manufacturers developed vehicles which used fuel more efficiently. That forced the refiners to trim their capacity and merge. Not only that, reportedly, the fuel demand especially for gasoline and diesel is expected to drop further by an average 1.3 percent on a yearly basis ill the end of March 2020.

In the last seven years, population of Japan dropped and last year it dipped to 126.9 million. According to an estimate by U. S. Census Bureau, that is the lowest since 2000.