Chinese oil demand to rise in Q2, COVID rules weigh – CNPC Researcher

China’s oil demand is expected to rebound to 14.26 million barrels per day (bpd) in the second quarter of 2022 after the country’s zero-COVID policy dampened consumption in the first quarter, a China National Petroleum senior researcher has said. Corp (CNPC).

Oil consumption was pegged at 13.9 million bpd in the first quarter through March 31, down 3% from a year earlier, Dai Jiaquan, director of the market research department, said Thursday. oil company of CNPC, during an online seminar.

The reduction in oil demand followed tough mobility restrictions across China, including a two-stage lockdown in Shanghai’s financial hub that could slash fuel demand by 200,000 barrels a day, after recorded thousands of daily cases of COVID-19 since March.

“The local COVID-19 outbreak will continue to weigh on China’s oil consumption in April and we expect demand to show positive growth in May,” Dai said.

The transport ministry expected a 20 percent drop in road traffic and a 55 percent drop in theft during the three-day holiday in Qingming in early April.

Dai said think tank CNPC lowered its second-quarter demand view by 180,000 bpd from its previous assessment, but said overall consumption would remain 1.8% higher than a year ago. one year old.

With COVID-19 cases under control and Beijing’s economic stimulus, he expects oil demand in China to climb to 15.26 million bpd in the third quarter and 15.37 million bpd in the fourth. quarter, up 4.1% and 6.7%. from year to year, respectively.
Source: Reuters (Reporting by Muyu Xu and Florence Tan; Editing by Jason Neely)

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Felix J. Dixon