Japan's Lower Demand Eases Pressure on Oil Prices - New York Times

HOUSTON — The recent economic jolt to Japan’s economy, by lowering energy demand, has at least temporarily offset some of the Libyan uprising’s impact on oil prices. But experts say there are limits to how long that buffering effect might last.

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In addition to Japan’s nuclear power industry, the earthquake and tsunami also damaged nine oil refineries, disrupting nearly one-third of the country’s refining capacity. Many factories and businesses have ground to a halt, and vehicle traffic in Japan’s bustling cities has eased. Oil shipments have been curtailed by damage at seaports along the tsunami-ravaged coast that will take months to repair. All told, Japanese demand for oil has been reduced by an estimated 1 million barrels a day. That is nearly one-quarter of what Japan imports, and roughly the same amount of oil that has been withdrawn from world markets by the unrest in Libya.

Japan's Lower Demand Eases Pressure on Oil Prices - New York Times