Oil Demand In Asia Shows Signs Of Easing

By PATRICK BARTA
Of THE WALL STRETT JOURNAL ASIA

.......Many forecasters already have lowered their estimates of Asian oil demand this year, in part because of fewer government subsidies. FACTS Global Energy Group, a consultancy in Singapore, says it now expects Asian oil demand to rise 2.7%, compared with an earlier estimate of 3.3%, though it notes that even at slower rates Asian consumption growth is still strong. It also says growth rates should continue to moderate in China, India and other Asian nations in the years ahead as their economies mature and develop more service industries, which use less oil than manufacturing does.

.........There are reasons to expect consumers will make more meaningful -- and more enduring -- changes this year than in the past. When prices first spiked a few years ago, economic growth was accelerating in Asia, boosting incomes and allowing many people to ignore higher fuel costs. This year, growth is slowing and inflation for food and other necessities is making it harder to disregard fuel-price increases.