Japan's refining industry partially closed
Chaos continues as bleak news from Japan streams in from devastated areas. According to an online Bloomberg article, oil prices fell to a two-week low in New York over speculation following the worst earthquake in Japan’s history. The situation will hurt growth and reduce fuel demand in the world’s third- largest economy.
Prices have dropped 6.1% in five days of losses--the longest losing streak in more than a month. The temblor that hit northern Japan on March 11 has shut 29% of Japan’s domestic refining capacity, according to Bloomberg calculations based on Petroleum Association of Japan data.
Japan refineries
JX-Nippon Oil & Energy Corp. closed refineries in Sendai, Kashima and Negishi in the country’s northeastern Tohoku region. The plants have combined processing capacity of about 600,000 bpd. Cosmo Oil Co. has shut its 220,000 bpd Chiba facility following fires at liquefied petroleum gas storage tanks. Kyokuto Petroleum Industries Ltd. has shuttered its 175,000 barrel-a-day facility in Ichihara near Tokyo. TonenGeneral Sekiyu K.K. said on March 11 that it halted the major units at its 335,000 barrel Kawasaki plant. Three of the five largest refineries operating Japan are now shutdown.
The closures have affected about 1.3 million bpd of capacity, or 29% of the country’s total of 4.516 million bpd refining capacity, based on data from the Petroleum Association of Japan.
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