Oil – US, UK, China demand all improving

Summary notes on crude via ANZ, noting that further strength in demand continue to emerge

On the positive side:
  • emergence of several US cities from lockdown
  • stronger demand in gasoline ahead of the key US summer driving season
  • In Europe, UK’s road fuel sales are nearing last summer’s levels
  • Sales for air travel, hotels and car rentals are selling out in China ahead of its Labour Day holiday
  • oil market has also been caught up in the broader rally across commodity markets as the recovery across key economies picks up
& not so positive:
  • renewed optimism is overshadowing headwinds in India, where a second wave of infections of COVID-19 are resulting in new travel restrictions being put in place
  • Demand in Japan and Brazil is also likely to be hit by a surge in infections and new restrictions
Summary notes on crude via ANZ, noting that further strength in demand continue to emerge
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