China Diesel Demand Peaked, while Gasoline Nearing Peak: Citi

Transportation demand globally is not appearing as robust as would be expected given current levels of GDP growth, according to Citi global head of commodities Ed Morse in an interview with CNBC.

• “While we are up on the year for product demand in China, that is the effect of last year’s shut-ins of industrial and transportation activity,” Morse said. “We think China has peaked in diesel demand and is about to peak if it hasn’t already in gasoline demand.”
• According to Morse, post pandemic demand is on a weaker path in terms of its relationship to GDP. Transport fuel demand doesn’t look as robust as it would be in a growing economy.
• “We are down on the year for product demand in the United States, despite being the world’s largest economy and the one seeing the most substantial growth. We are also down in Europe,” Morse said.