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Japan oil demand to keep declining next year

Published December 16, 2011 Updated December 16, 2011 09:07am

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.

Copyright Reuters, 2011