Q&G: Chinese demand nears pre-crisis levels

On Monday (18), sources informed Bloomberg that Chinese demand for oil is almost at the levels last seen before the national isolation to combat the coronavirus. 

The country's rapid recovery helped reduce supply in the oil market sooner than expected. WTI oil, which a month ago was trading in negative territory, soared and was traded above $30 a barrel. In addition, with the reopening of factories and passengers who prefer to use the car instead of public transport, the consumption of gasoline and diesel has already recovered. 

According to a major trading executive, "the Chinese are buying everything they see ahead." In addition, oil refineries started a wave of barrel purchases in the physical market, which also helped the recovery of prices. Liu Yuntao, an analyst at London consultancy Energy Aspects, also said: "Demand for oil in China is beginning to show optimistic signs of a full recovery, led by diesel."


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