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On the demand side of the equation, Japan is having to use oil to compensate at least partially for loss of nuclear. I read somewhere they are using importing about 400,000 bpd more than before the tsunami. True ?

Dave Cohen


Quoting the news story--

Japan lost oil supplies from South Sudan, even as its total crude purchases for generating power surged because of the need to replace electricity from idle atomic reactors.

The country imported 1.75 million kiloliters of oil, or about 369,000 barrels a day, for power generation in February, more than four times as much as a year ago, according to data today from the Ministry of Economy, Trade and Industry.

Imports for power generation were up 15 percent from January. February’s purchases for power plants accounted for 9.6 percent of Japan’s total crude imports of 17.76 million kiloliters for the month, according to the trade ministry data...


-- Dave


So according to Reuters, if only the world could produce a whopping 1.333% (1.2m barrels) more oil per day, prices would come crashing down. Right. I'm sure speculators trading on the Nymex and ICE couldn't possibly come up with another reason to justify high prices (certainly not increasing BRICS consumption or stagnant (at best) conventional production.) And news flash for Mr. Wolf - deceased consumption at point A (America) means increased consumption at point B (BRICS etc.); the fact that decreased consumption here puts no downward pressure on prices is just another sign of the U.S.' increasing irrelevancy.

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