Nippon Oil to Cut Crude Processing on Weaker Demand

By Megumi Yamanaka

Oct. 27 (Bloomberg) -- Nippon Oil Co., Japan's largest refiner, will process less crude oil for a fifth consecutive month in November because of weaker petroleum demand.

The Tokyo-based refiner will process 4.12 million kiloliters (25.9 million barrels) of oil during the month, down 15 percent from a year earlier, the company said today.

Nippon Oil joins other refiners such as Idemitsu Kosan Co. in making production cuts as the year-end approaches due to declining demand for gasoline and other refined products. In August gasoline sales dropped by the most for the month since 1953 as high prices prompted motorists to reduce purchases.

Idemitsu, Japan's second-biggest refiner, in September said it will cut its oil processing by 14 percent in the quarter ending Dec. 31, compared with the corresponding period last year. Showa Shell Sekiyu K.K. said it will cut its rate by 4.4 percent from September through December.

Japan's consumption of refined products is set to fall by 2.9 percent annually in the five years to March 2013, according to the trade ministry.

To contact the reporter on this story: Megumi Yamanaka in Tokyo at myamanaka@bloomberg.net.