The Asian gas oil demand is expected to grow in 2021 driven by an expected increase in consumption especially during H2 2021, according to S&P Global Platts.

However, industry sources spoke to S&P noting that this growth may face obstacles due to a slower than expected roll out of mass vaccination programs, complications arising from the emergence of new strains of COVID-19 as well as the possibility of continued low product margin.

“The vaccination programs for many countries are falling behind schedule, so while demand for gasoil will surely grow this year, it is more a question of by what extent or quantum this will be,” a trader said.

JY Lim, oil markets adviser at Platts Analytics, said: “Platts Analytics expects Asia’s diesel demand, which is estimated to have dropped 2.7% year on year in 2020 to 9.8 million barrels per day (mmbbl/d), to bounce back by 3.2% year on year in 2021 as the economy in the region recovers,”.