Insight - Covid struggles bring demand destruction back

Mass testing: Residents line up at a Covid-19 testing site at a residential compound in Dalian. The number of infections in China jumped on Tuesday to hit a two-year high. — AFP

THE crude oil market has spent recent weeks worrying about the impact on supply from Russia’s invasion of Ukraine, but China’s ongoing battle to contain the coronavirus pandemic is highlighting the return of demand destruction fears.

The number of Covid-19 infections in China jumped on Tuesday to hit a two-year high, and while the caseload is small by international standards, Beijing’s policy of zero-Covid is raising concerns of more lockdowns.