News Flash: Possible Nuclear Meltdown at Japanese Plant
March 12, 2011 Leave a comment
Although the price of oil fell Friday because some feel demand destruction will be the result of the Japanese disaster, the Japanese are likely to import more oil not less. The meltdown issue will see heavier use of fuels to make up for loss of nuclear generated electricity.
We forecast a sharp spike in oil once again, and indeed if the Japanese import an additional 500,000 bpd (as they did after the Kobe quake in the mid 1990’s) it may help support prices at levels to high for the global recovery to shrug off easily.