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China’s Oil Demand Outlook Darkens as Virus Crisis Persists

  • Case numbers in Shanghai still rising despite lockdown
  • FGE sees 1.2 to 1.3 million b/d of fuel consumption lost
An oil and petrochemical storage facility on the outskirts of Shanghai.
An oil and petrochemical storage facility on the outskirts of Shanghai.Photographer: Qilai Shen/Bloomberg
Updated on

China’s worsening Covid-19 outbreak and the extended lockdown in Shanghai has oil analysts cutting their demand forecasts further. 

The commercial hub’s staggered eight-day lockdown that was supposed to end earlier this week is still going, with record case numbers topping 20,000 on Thursday. Traffic congestion levels at peak hours are 40% lower than a year ago, data from Baidu Inc. show, while the movement restrictions and virus testing means truckers can’t get to the docks.