China's fuel demand outlook improves

Following a significant easing of COVID restrictions in China, road transport and air traffic in the world's second-largest oil-consuming country quickly recovered. This has significantly improved the outlook for fuel demand, and has also supported crude oil prices. 

Last week, along with easing the quarantine rules, China abandoned frequent testing for the virus and stopped travel tracking. The removal of the main restrictions occurred after almost three years of implementing a policy aimed at a zero threshold of morbidity.

The current changes immediately contributed to an increase in mobility in the country. According to the transport ministry and data from analytical companies and consulting firms in the field of energy, road and air transport were on the rise for the first time in the past two months. 

China is the largest buyer of oil in the world. In this regard, the global energy market is closely watching the recovery of mobility in the country. According to forecasts, large-scale restrictions will cause a reduction in oil demand for the first time in twenty years.