Japan's largest refiner JX Nippon Oil & Energy plans to process 4.82 million kiloliters or 1.01 million b/d of crude for the domestic market in September, down 5% year on year, a company official said Thursday.
The company's August oil products exports dropped 42% year on year to 420,000 kl as a result of recent capacity cuts and deteriorated margins for the products exports, the official said.
Japan is in its peak summer oil demand season, when the weather has an impact on demand for crude and fuel oil for thermal power generation and motor fuel.
Japan's summer driving season normally peaks in July and August, and the peak power demand season typically spans July-September.
In August, Japan's fuel oil demand for power generation was estimated to have dropped 31% year on year to 770,000 kl or 156,231 b/d, due mainly to a series of torrential rains, which lowered temperatures and demand for air conditioning in western Japan, the official said.
Japan's estimated fuel oil demand for power generation in August was the lowest for the month since the country had fuel oil demand of 750,000 kl or 152,173 b/d in August 2010, marking the lowest demand since the devastating March 2011 earthquake, the official said.
Japan's gasoline demand was estimated to have fallen 5% from a year ago to 5.06 million kl or 1.03 million b/d in August, when the country's demand for the motor fuel peaks for summer driving season, the official added.
