Bloomberg questioned oil demand early Tuesday, citing increasing coronavirus (COVID-19) conditions in South Asia. The analysis points to a lesser percentage of vaccinated persons as the main hazard to the countries led by Indonesia.
Indonesia, Southeast Asia’s largest economy, is experiencing a particularly severe Covid-19 outbreak, with travel restricted in Java’s industrial core and Bali’s tourist enclave.
Malaysia is still under a state of emergency, and Thailand has recently tightened its restrictions.
According to FGE, Indonesian motor gasoline demand will drop by 8% in the third quarter compared to May, when the virus’s comeback began to have a significant impact on the economy.
According to the industry consultant, it will drop by 17% in Malaysia over the same period.
According to Apple Mobility data and Bloomberg estimations, daily traffic levels in Indonesia have dropped by about a fifth this month compared to June.
Further south, Australia has escaped the high mortality tolls of its neighbors, although Sydney, the country’s largest metropolis, remains closed and traffic has decreased.
Following the news, WTI oil prices fell for the second day in a row, falling 0.10 percent to $73.55 in the early Asian session on Tuesday.
WTI is in the crosshairs of OPEC and COVID concerns./n
