Virus restrictions across Asia threaten recovery in oil demand – Bloomberg
Early Tuesday, Bloomberg raised doubts over oil demand amid worsening coronavirus (COVID-19) conditions in South Asia. The analytical piece highlights a smaller portion of the vaccinated people as the key threat for the nations led by Indonesia.
Key quotes
Indonesia, Southeast Asia’s biggest economy, is being wracked by a particularly brutal wave of Covid-19, with movement curbed in the industrial heartland of Java and the tourist enclave of Bali.
Malaysia is still in the midst of a nationwide lockdown, while Thailand has just stepped up restrictions.
Indonesian motor fuel demand will drop by 8% in the third quarter compared with May, before the virus resurgence started having a major impact on the economy, FGE forecasts.
In Malaysia, it will plunge by 17% over the same period, the industry consultant said.
Daily traffic levels in Indonesia have fallen by around a fifth this month from June, Apple Mobility data and Bloomberg calculations show.
Further south, Australia has been spared the high death tallies of its neighbors but the largest city of Sydney remains locked down and traffic has dipped.
Market implications
Following the update, WTI oil prices remain weak for the second consecutive day, down 0.10% around $73.55, amid the initial Asian session on Tuesday.
Author
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
