Aviation fuel demand can reduce due to coronavirus: S&P Global Platts

New Delhi: As the world continues to grapple to contain the novel coronavirus spread and government’s travel advisories cautioning people against travelling to the virus affected regions, S&P Global Platts on Friday estimated a potential aviation fuel demand projected a likely reduction in the aviation fuel demand between 50,000 barrels per day (bpd) to 150,000 bpd.

This comes in the backdrop of volatile oil prices, trade tensions and a slowing global economy, with the International Monetary Fund (IMF) on Monday slashing projected global growth by 0.1 percentage point for 2019 and 2020, and 0.2 percentage point for 2021.

“Although it’s still too early to make definitive estimates on oil demand and macroeconomic impact, we pencil a potential reduction of 50-150 MB/D in jet demand mostly for the next two months as Chinese Lunar New Year-related travel could increase the spreading of the virus,” S&P Global Platts wrote in a report.