China is leading the global oil demand recovery process as it reaches 90 percent of pre-Covid-19 levels in the month of April, according to HIS Markit.
The London-based global information provider predicts the level to reach 92 percent in the month of May.
Jim Burkhard, vice president and head of oil markets, IHS Markit told the media, “The brisk resumption of Chinese oil demand, 90 percent of pre-COVID levels by the end of April and moving higher, is a welcome signpost for the global economy. When you consider that oil demand in China—the first country impacted by the virus—had fallen by more than 40% in February—the degree to which it is snapping back offers reason for some optimism about economic and demand recovery trends in other markets such as Europe and North America.”
According to Wood Mackenzie- a global energy consultancy group, China’s oil demand is set to recover to 13 million barrels per day (bpd) in the second quarter of 2020, up by 16.3 percent from the first quarter.
However, when compared to the second quarter of the previous year, Q2 2020 demand is about 2.5 below Q2 2019.
Wood Mackenzie’s research associate Yuwei Pei said in its report that the Chinese government has gradually lifted the coronavirus containment measures since the beginning of April. As a result, offices have reopened and people are returning to work after a period of telecommuting. In addition, private car use is now seen as the safest mode of mobility, shifting passengers from public transport to private cars.