China’s Virus Flare-Up Before Holiday Stokes Oil Demand Fear
- Government discouraging travel during Lunar New Year holidays
- Fuel use to dip; crude premiums sink as traders wait and see
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The resurgence of Covid-19 in China has led to lockdowns and calls for citizens not to travel during the upcoming Lunar New Years holidays, stoking concern that oil and fuel demand will take a near-term hit.
People are being encouraged to remain in their cities to prevent the spread of the coronavirus, with some provinces offering cash incentives, or hongbao, and food vouchers to those who choose to stay home. China State Railway Group Co. cut its estimate for the number of travelers over the festive period to 296 million from 407 million amid low train ticket bookings, Xinhua news agency reported. While it’s a significant drop, it’s still higher than 2020.