Kuwait to send 5 million barrels of oil, products to Japan

Japan is also receiving more than 60 cargoes of extra LNG from Qatar over the next 12 months to help generate power
Kuwait to send 5 million barrels of oil, products to Japan
ENERGY NEEDS Japan used 5.07 million bpd of oil in February according to the IEA (Getty Images)
By Reuters
Mon 18 Apr 2011 05:45 PM

Kuwait will offer 5 million barrels of oil and oil products to Japan, the country's state news agency quoted its oil minister as saying on Monday.

"Based on the orders of the emir, the cabinet decided to contribute 5 million barrels of oil and oil products to Japan," KUNA quoted Sheikh Ahmad Al Abdullah Al Sabah as saying.

After its devastating earthquake in March, Japan has been expected to need additional oil imports as it rebuilds its shattered electricity grid. Traders see higher demand for diesel and fuel oil from the quake-hit country.

OPEC member Kuwait is the world's fourth-largest oil exporter and a major seller of oil products.

A senior Japanese official said on Sunday the country was currently importing 4.2 million barrels per day of oil and predicted the demand would rise.

The International Energy Agency said in its most recent monthly report that reconstruction and additional oil-fired power generation in Japan could boost the country's oil demand by 30,000 bpd this year, although some analysts expect an even bigger increase.

Japan used 5.07 million bpd of oil in February according to the IEA.

In addition to oil supplies, the country is also receiving more than 60 cargoes of extra liquefied natural gas (LNG) from Qatar over the next 12 months to help generate power.

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