Dark Clouds Loom for Oil as China Chases Blue Skies for G-20
- Factories asked to cut activity before G-20 meet in Hangzhou
- Activity curbs and last month’s flooding seen reducing demand
G-20 Summit May Affect Chinese Oil Demand
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China is throwing the world’s leaders a party, and oil bulls may be hit with the hangover.
Authorities in the Asian nation have ordered hundreds of factories to curb activity ahead of the Group of 20 summit in Hangzhou in early September, in a bid to ensure blue skies when the red carpet is rolled out. The curtailments, along with flooding earlier this summer, may cut petroleum demand in the world’s second-biggest oil consumer by 250,000 barrels a day in the third quarter, according to industry consultant Energy Aspects Ltd.