As measures to curb the coronavirus pandemic reduce jet fuel and gasoline use, Japanese oil refiner Idemitsu Kosan expects Japan’s demand for oil products to fall by about 20 percent in the April-June quarter from a year earlier.
Bigger than its earlier estimate of about a 14 percent decline, overall demand for oil products in Japan is now seen dropping about 20 percent in April-June. Takashi Tsukioka, chairman of Idemitsu, said jet fuel demand expected to plunge more than 50 percent.
Due to the coronavirus pandemic, global fuel demand in Q2 is set to drop by as much as 15 percent to 20 percent. Idemitsu estimates gasoline demand will fall by about 20 percent in Japan and diesel demand will dip 10 percent for the quarter.
Whether Japanese refiners would reduce crude purchases going forward, Tsukioka said while cutting spot purchases, they were likely to take full contractual volumes for April and May.
