Chinese oil demand near pre-pandemic levels,diesel demand expecting a boost

摘要

According to Bloombetg,domestic oil demand is currently near 13.0MM b/d,which is not far off from 13.7MM b/d consumed in Dec.and 13.4MM b/d consumed last May.The development comes as independently-owned refineries increase processing rates to 75%,which is even higher than year-earlier levels of 60%.Bloomberg reports that recovering industrial activity and commuting has boosted demand for diesel and gasoline.In addition,farmers being encouraged by the Chinese government to plant more has also boosted diesel demand.At the same time,jet fuel demand remains week.As a result of the rebound in Chinese consumption,oil prices across the globe have been boosted as US WTI was reported to be at $31.80/bbl,a 0.3% increase from April levels,on May 19 while Brent prices were at $34.80/bbl.At the same time,Bernard Looney,CEO of BP,warns that oil demand could possibly never recover to levels prior to the coronavirus pandemic.