Far East oil demand shows signs of recovery - IEA

According to the April 2002 IEA monthly oil market report, for the first time in almost two years the Japanese government has upgraded its assessment of its economy, but warned that it is too early to expect a full recovery.

The Japanese expect that the low yen and the rebound in the US economy will boost exports and help Japan to break out of three consecutive quarters of recession. The moving annual average change in oil demand (percentage change between the demand average for the preceding 12 months compared to that of the same period a year earlier) in Japan as of February 2002 was down by 3.6%. The only oil product showing a positive growth was demand for gasoline. IEA expect Japanese total oil demand to decrease by 1.8% in 2002.

The South Korean economy has been able to withstand the downturn in the global economy better than Japan. The moving annual average change in oil demand is down by 0.2%, with positive growth in the demand for LPG, naphtha, gasoline and diesel. IEA expect South Korean oil demand to stay flat in 2002.

Chinese (implied) oil demand reached 4.72 mbd in January 2002, up by 4.4% from 2001, but down by 4% from December 2001. Much of the year-on-year increase in demand came from higher deliveries of diesel. IEA expect Chinese oil demand to increase by 2.4% in 2002.

The general details of world oil supply and demand the can be viewed here.