Argentina oil demand back to near pre-pandemic levels in May

Quantum Commodity Intelligence – The demand for oil products in Argentina, Latin America's third most populous country, rose in May to near pre-pandemic levels, despite a strong rise in cases linked to the Covid-19 gamma variant, data from the government showed Monday.

Oil demand reached 589,000 bpd during the month, down just 1,000 bpd from May 2019 levels. It was also up 40,000 bpd on the month and the highest level recorded since November 2019.

Industrial fuels such as LPG, natural gas liquids and gasoil were all in high demand and above corresponding 2019 levels. By contrast, gasoline was still down 37,000 bpd, or 24%, from May 2019 and jet fuel deliveries were still 75% lower than in May 2019, at 8,000 bpd.

Argentina has seen about 93,000 deaths linked to the pandemic, according to official data. In May, new cases surged in relation to the spread of the gamma variant, first identified in Manaus, Brazil.

Authorities imposed social distancing measures, such as school closures and night curfews, leading to a drop in transport fuel demand. Overall mobility in the country was down around a third versus pre-pandemic levels in May, data from Google showed.

The number of new Covid-19 cases fell sharply at the start of June and mobility recovered to a 26% shortfall versus January 2020 levels.

Situated in the southern hemisphere, Argentina is about to enter its winter period, normally associated with a rise in Covid-19 cases.