China’s Covid Curbs to Upend Commodities Demand in Peak Season

(Bloomberg) — The worsening spread of Covid in China could upend food and energy markets this winter by cutting demand at a time when consumption typically rises. 

Coal and gas usage is highly contingent on industrial power demand, which will slow if the government continues to impose tighter restrictions that curtail factory activity. Oil markets, meanwhile, will take a hit as fewer people travel by road and air and less fuel is needed to transport goods.