South Korea's oil consumption fell in 2015, and is unlikely to increase significantly in 2016, South Korea's oil industry association in the annual report released last month, said.
The association pointed out that the country's oil industry in recent years, encountered many difficulties.
"Oil consumption in 2007 suffered a 24% plunge, when the country is suffering from the Asian financial crisis, and the most recent is a 1.9% decline in 2012," the report said. Lubricating oil suppliers should set up sales targets similar to last year, and respond flexibly to changing market conditions."
The headquarters is located in Seoul and represents South Korea's major oil producers in the organization forecast, South Korea in 2016 the demand for oil will only go up to 0.9%, reaching 930 thousand tons. The reasons for the group include the global economic downturn, the slowdown in China's economic growth, and the decline in the domestic manufacturing sector.
The association predicts that in 2016 the demand for automotive lubricants and industrial lubricants will increase by 1.1% and 0.9%, respectively, reaching 327437 tons and 173008 tons. In addition, metalworking fluids and anti rust agent demand will increase by 0.8 per cent to 116534 tons; marine oil will increase by 6.6%, to 101768 tons; grease will rise 0.5%, reach 16626 tons; and the electrically insulating liquid will be decreased by 4.1%, to 21785 tons.
As for 2015, the Association estimates that the amount of oil consumption has been reduced by 1.4% to 921746 tonnes. The decline is due to the domestic economic depression caused by the outbreak of the Middle East respiratory syndrome, and the most difficult recession since the global financial crisis of 2008.
Sea oil was the worst, with a 12.4% reduction in demand. This is caused by the depression of the shipbuilding industry in Korea. According to the report, in the case of the global economic downturn, the delivery of the vessel has been delayed and the order has been revoked.
The South Korean government is expected in 2016 the rate of economic growth will reach 3.1%, better than 2.7% in 2015.