(Reuters) - Japan scrambled on Saturday to reduce pressure in two nuclear plants damaged after a massive earthquake and tsunami struck its northeast coast, probably killing at least 1,300 people. The earthquake, of magnitude 8.9, hit commodities prices across the board on fears over its impact on the world's third largest consumer of commodities. U.S. crude prices spiraled further down after a second tremor of magnitude 5.8 struck.
The tsunami triggered by the earthquake did no major damage when it reached the Pacific coast of North and South America early on Saturday.
Oil refineries and power plants on the U.S. West Coast had stood on guard against the possible tsunami, and thousands of people had fled their homes.
Tokyo Electric Power Co. (TEPCO) (9501.T) was taking steps to release pressure at its two nuclear power plants in Fukushima, 240 km (150 miles) north of Tokyo.
Japanese Prime Minister Naoto Kan warned that minute amounts of radiation had been released from the Fukushima plant, whose cooling system was knocked out from the first earthquake. Radiation levels at the plant's central control unit were 1,000 times the normal level.
Here is the impact on the energy and commodities sector from Japan's disaster:
OIL
- U.S. crude oil prices slipped further on the news that a fresh earthquake hit Japan on Saturday. Front-month crude oil futures on the New York Mercantile Exchange traded down $1.76 a barrel by 2:13 p.m. to $100.94, settling the day at $101.16.
- With one-third of Japanese refining capacity shut and ports closed, Wells Fargo Securities analysts said crude oil tankers headed to Japan would be diverted to other Asian refineries.
- U.S. refinery margins were higher on Friday on expectations that Japan will need product imports.
- U.S. energy companies with operations in Hawaii, Alaska and along the California coast including oil refineries were bracing for the possible impact of a tsunami after the Japan earthquake.
- Maruzen shut two naphtha crackers at Chiba with capacities of 480,000 and 690,000 tonnes of ethylene per year, respectively.
- Kyokuto Petroleum said it shut its 175,000-bpd Chiba refinery after the quake, and will not reopen until Saturday at earliest.
- Major explosion hits petrochemical complex in northeast Japan's Miyagi prefecture, Kyodo news agency says.
- Cosmo Oil (5007.T) said a fire at its Chiba refinery started from near LPG tank, not yet extinguished.
