BANGKOK, 18 March 2011 (NNT) – Prices of refined fuel are likely to go up in line with higher demand, especially in Japan after the country was severely hit by a massive earthquake and a deadly tsunami.
Assessing the oil consumption situation in Japan after the major catastrophe, Energy Minister Medical Doctor Wannarat Channukul stated that crude oil demand in that country has dwindled by 20% or about 1 million barrels a day.
The change in demand for crude is due to the fact that domestic oil refineries were unable to operate after the wrath of nature, prompting a decline in global demand and oil prices.
In contrast, prices of the refined oil, especially diesel, have increased as the oil is needed for electricity production and heating systems in the quake-hit country.
The minister warned that world crude price might adjust up again due to persisting violence in Bahrain and unrest in Libya. He said the ministry hence will monitor political turmoil in the Middle East closely.
