TOKYO: Oil demand in Japan is expected to keep fading next year, although reconstruction after the March earthquake and tsunami will limit declines in coming months, an industry body said on Friday.
Japan is the world's third biggest oil consumer, and its usage of gasoline, which accounts for the bulk of demand, has been falling due to a sluggish economy and growing appetite for energy efficient cars.
"Reconstruction means demand is expected to increase slightly in coming months, but the basic trend (next year) will be for a decline (in oil demand)," Yaichi Kimura, Vice President of the Petroleum Association of Japan, said at a news conference.
Kimura, also President of Cosmo Oil Co, said the company aims to resume operations at one of the two crude destillation units (CDUs) at its quake-hit Chiba refinery as planned in January.
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