Monday, June 29, 2009

Will Japan increase oil reserves?

Oil prices went up today. They are saying it's become militants attacked an oil pipeline in Nigeria.

I wonder if it's not because countries are now starting to stockpile oil.

China is increasing their oil reserves from 1 months supply to 3.

Now Japan is following suit.

This from Lloyd's List

JAPAN has struck a deal with an oil company in the United Arab Emirates that would see more crude oil transported to the Far East to fill an onshore reserve base.

And in May 2009, reported

Japan's business daily Nihon Keizai reported that Japan may increase its national oil reserves to the equivalent of about four months' worth of domestic consumption, or a 40 percent increase over current levels.

Government officials denied the Nikkei report.

Overall, the price should be going down. Demand is going down according to

June 29 (Bloomberg) -- The International Energy Agency, an adviser to oil-consuming nations, cut five-year forecasts for global crude demand because of the economic slump, predicting consumption won’t regain last year’s levels until 2012.

click here for article from Bloomberg

So, bunker fuel prices should be coming down too. Once all the countries are finished increasing their oil reserve stocks.

At least the good thing about this for the tanker operators is this has increased the demand for tankers. But that will be short lived.

No comments: