Global Oil Demand Threatened by China’s Tight Covid Lockdowns

(Bloomberg) — China’s worst virus outbreak since the start of the pandemic has led to some oil refiners cutting back operations and is forcing analysts to rethink their demand estimates as strict lockdowns curb consumption.

The Covid-19 resurgence is posing a threat to global oil consumption and may accelerate demand destruction, helping to rein in bloated prices that soared on Russia’s war in Ukraine. Independent refiners in the key hub of Shandong have been forced to resell crude cargoes and reduce processing as flights are canceled and traffic thins in some of China’s biggest cities.