The French-based International Energy Agency (IEA) is forecasting stronger oil demand from the East this year.
Resilient economies, stronger imports from China and vastly increased consumption in Japan will lead to Asia “dominating” the global oil-demand growth in 2012, according to the IEA.
Despite slower growth across China, India, Japan and South Korea, the far East will most likely fare better than the Americas, Europe and ex-bloc countries, where oil demand is likely to shrink. Global oil demand will increase by around 800,000 barrels to 89.9 barrels-per-day this year, with Asia adding 700,000 barrels of this expansion.
Murmurings that China will face a “hard landing” in 2012, with growth shrinking below the proposed target of 7.5%, are reflected in the country's share of global oil-demand growth, which is expected to shrink to 45% from 60% a year earlier.
This leaves much of the Asian growth being led by Japan, after last year's nuclear power plant closures drove the country to look for alternative energy sources. Since 2011, crude oil burning has gone up by 135% to 165,000 bpd.
South Korea and India should also continue to rise steadily, despite the IMF marginally lowering growth forecasts for 2012.