Asia’s uneven oil demand recovery has been headlined by China and India, but the Covid-19 comeback that’s swept through other key fuel-consuming nations is complicating a return to pre-pandemic levels.
It’s a flare-up that’s had varying impacts, according to May manufacturing and traffic data. Driving and industrial activity in Japan was robust, despite a state of emergency, while Malaysia fared poorly amid its virus wave, missing out on a typical seasonal boost. Indonesian fuel demand was strong and Australia has managed to see off the worst of pandemic-related disruptions.
The biggest drag on overall gasoline and diesel demand remains India, but there are emerging signs that the recovery is underway across Asia.
China has been Asia’s standout, with its rapid rebound from Covid-19 helping to underpin a global recovery and a surge in oil prices. The world’s biggest oil importer has managed to swiftly contain localised flare-ups, giving its citizens the confidence to commute to work and vacation across the nation. The...read more...