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Europe’s Oil Demand Outlook Turns Gloomier on Renewed Lockdowns

  • Rystad says oil demand could be hit by 1 million barrels a day
  • Airline share prices extend slump on worsening outlook
Photographer: Ali Mohammadi/Bloomberg

The oil demand recovery in Europe, a region that accounts for about 15% of global consumption, looks set to take a fresh hit as the continent struggles to deal with another wave of coronavirus cases that could curb summer travel plans.

Shares of all of Europe’s biggest airlines, including British Airways owner IAG SA, slumped this week over concerns about a deteriorating outlook for bookings. Germany, France and Italy have all widened lockdown measures this month. The U.K. is to fine people up to 5,000 pounds ($6,900) if they take overseas holidays now, while wavering about a planned reopening on May 17.