Nowadays, China is virtually the only trendsetter in the global oil market. The world’s second-largest oil consumer has eased all coronavirus-related restrictions. Importantly, Beijing has lifted the travel ban and reopened almost all manufacturing enterprises. Restarting the national economy revived energy demand which has recovered to over 90% of the pre-pandemic level. “The brisk resumption of Chinese oil demand, 90% of pre-COVID levels by the end of April and moving higher, is a welcome signpost for the global economy,” said Jim Burkhard, vice president and head of oil markets research at IHS Markit.
Experts are encouraged by the surprisingly robust rebound of oil demand. Analysts at Wood Mackenzie estimate that oil consumption in China will increase by 2.3% in annual terms in the second half of the year and will be measured at 13.6 million barrels per day. Buoyant demand for energy will be propped up by robust logistics and industrial production. “By Q3 2020, China’s gasoline demand would have surpassed the same period last year by 3% to 3.5 million bpd,” the research group reckons. Besides, experts project diesel consumption to grow by 1.2% to 3.4 million bpd over the same period.