Japanese refiners are considering deepening their run rate cuts in April as the coronavirus pandemic weakens global demand for refined products. Industry sources said that at least two refiners in Japan are assessing a possibility to cut runs further next month due to dropping domestic demand of gasoline and gasoil.
Previously, Japanese refiners hoped regional transportation fuel demand would recover in the second half of 2020 during the Tokyo Olympics. But that hope was shattered after International Olympic Committee President Thomas Bach and Prime Minister Shinzo Abe decided to postpone the event due to the COVID-19 pandemic.
Data from the Petroleum Association of Japan showed the country's crude throughput was 2.82 million bpd during the week ended on March 21, falling 2.9% from the previous week. It was last lower at 2.81 million bpd recorded on the week ended October 26, last year, during the autumn refinery turnaround season.
Jet fuel demand will plunge further next month as more airliners suspend flights on more routes. Idemitsu Kosan expected domestic jet fuel demand to decline 20% year-on-year in April, while demand for its bonded jet fuel would fall 40% over the same period.
Meanwhile, Japan’s domestic gasoline sales were recorded at 20.44 million barrels in the four weeks to March 21, declining by 10.2% from the corresponding period last year. Gasoline exports declined 2.6% to 2.33 million barrels over the same period.
