Golden Week in China: we are waiting for a reaction in the oil market

Golden Week in China: we are waiting for a reaction in the oil market The number of search requests for flights abroad for Labor Day weekend has already reached 120% of the 2019 level. Golden Week and the prospect of a sharp increase in air travel in China could be a strong positive for the oil market.The country plans to rest for five days  from April 29 to May 3. In 2019, during a similar holiday, about 170 million Chinese went on vacation abroad, and last year, at the maximum anti-COVID restrictions, this figure dropped to 9 million people. So now the growth in the consumption of aviation kerosene in this country is regarded as a strong driver of growth in world demand for oil. Moreover, domestic demand for jet fuel in mainland China has almost fully recovered, and international demand has recovered to almost 70% of the level at the start of the pandemic.At the moment, the oil market is balancing between two factors  the threat of a recession in the economies of developed countries and the forecast that the opening of China could sharply increase energy demand after three years of declining consumption.If Golden Week delivers significant growth in air travel, it would signal a recovery in demand and support some of the more bullish oil price projections.According to the China Air Transport Association, so far international flights in booked air tickets do not exceed 50%, but the overall dynamics is encouraging. If the actual number of passengers turns out to be significantly less than the forecast, then too sluggish economic recovery in China will disappoint commodity markets. And then, to turn up the oil will have to look for other arguments.Let's see what happens.Profits to yall!#ForexChief #LaborDay #forexnews #stocks #worldnews #Market