Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your experience. Save up to 40% More details

China’s Virus Flare-Up Stokes Oil-Demand Fears

Commodities Aug 03, 2021 03:09AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
© Bloomberg. Residents receive nucleic acid tests for the Covid-19 coronavirus in Nanjing in China's eastern Jiangsu province. Source: STR/AFP/Getty Images

(Bloomberg) -- China is renewing restrictions and canceling flights as a Covid-19 resurgence in Asia’s top oil consumer sends jitters across the crude market.

Local governments are rushing to close off some cities and townships, while tourists are being turned away from popular sights as authorities seek to halt the fast-spreading delta variant during the peak summer travel season. Flights in and out of Beijing have been canceled, with China National Petroleum Corp. estimating jet fuel consumption will be the hardest hit by the new measures.

“This round of infection could potentially wipe out 5% of short-term oil demand,” Wang Lining, a researcher with CNPC’s Economics and Technology Research Institute, said by phone. The continuing impact on consumption will depend on infection rates and the duration of the resurgence, Wang added.

China has grappled with the odd virus flare-up in the past, but has typically managed to contain the outbreaks, helping to underpin a strong recovery from the pandemic and a broader rebound in oil. However, delta has led to a surge in infections across the globe and renewed lockdowns in some regions, most notably in Southeast Asia, which is crimping fuel consumption.

This latest outbreak has reached nearly half of China’s 32 provinces in just two weeks, and while the overall number of infections is still low, the wide spread indicates that the variant is moving quickly. Residents in Beijing have been told to refrain from leaving the city, while people in Nanjing -- the epicenter of the new resurgence -- have been placed under lockdown.

Flights from Beijing to Nanjing, Zhangjiajie and Zhengzhou were all canceled on Tuesday, according to travel app Umetrip, while trains to the capital from areas considered mid-to-high risk were also halted. The number of tracked flights servicing Nanjing’s Lukou International Airport fell from 292 on July 19 to zero on July 27, Flightradar24 showed.

Click here for the latest count on confirmed Covid-19 cases in China

“I planned to go back to Taiyuan for my 96-year-old mother’s birthday, which is a big deal in our family,” said Dong Jinxian, a Beijing resident. “The sudden outburst of the epidemic clusters made me worry about safety. I believe staying at home and reducing travel is the best choice at present.

©2021 Bloomberg L.P.

China’s Virus Flare-Up Stokes Oil-Demand Fears

Related Articles

Oil edges lower as supply disruption concerns ease
Oil edges lower as supply disruption concerns ease By Reuters - Aug 11, 2022 2

By Laura Sanicola and Muyu Xu SINGAPORE (Reuters) -Oil prices slipped in Asia on Thursday after gaining more than $1 in the previous session, as concerns over supply disruptions...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
Sign up with Email