Water Shortage May up Japan Utilities’ Oil Demand

Water shortages in western and southern Japan have forced at least two utilities to reduce hydroelectric generation and crank up oil-fired power plants, spurring market expectations that utilities’ demand for oil may rise this summer, traders said on Friday.

A possibly serious dearth of water in coming months may also affect nuclear power plants, which use huge amounts of the liquid to turn steam-driven turbines and as a coolant, traders said.