<article><p class="lead">Saudi Arabia will extend ongoing restrictions on gatherings, entertainment activities and events by another 20 days in response to a worsening of the Covid-19 situation in some regions of the kingdom. This extension of the measures will likely weigh on transport fuel demand in the country. </p><p>The announcement, made earlier today, will keep in place the restrictions first imposed on 4 February for an initial 10 days through until 6 March. According to the ministry of interior, a further extension is possible if the situation continues to worsen. </p><p>Since 4 February social gatherings have been limited to a maximum of just 20 people, while all entertainment and in-restaurant dining have been completely suspended. Shopping malls and sports centers have also been closed. </p><p>This comes as the number of daily Covid-19 cases continues to rise. The authorities have reported an average of 334 new Covid-19 cases daily so far in February, up from 172 cases in January and 174 in December. </p><p>This increases in Covid-19 cases recently prompted Saudi Arabia to <a href="https://direct.argusmedia.com/newsandanalysis/article/2182075">push back its plans to reopen its borders to mid-May</a>, from the initially planned <a href="https://direct.argusmedia.com/newsandanalysis/article/2175597">31 March</a>. </p><p>The country also <a href="https://direct.argusmedia.com/newsandanalysis/article/2183201">banned arrivals from 20 countries</a>, in the first week of February, dealing a blow to prospects for a recovery in regional jet fuel demand in the upcoming months. Saudi Arabia is the second largest jet consumer in the region behind the UAE. </p><p>Today's announcement will put further pressure on already fragile gasoil and gasoline demand as well. </p><p>Saudi <a href="https://direct.argusmedia.com/newsandanalysis/article/2179172">gasoil demand fell by 8pc month-on-month to a ten-year low [of 410,000 b/d in November</a>, according to the latest data from the Joint Organisations Data Initiative (Jodi). The last time demand was lower was November 2010, when it stood at 370,000 b/d. Gasoline demand, meanwhile, fell by 4pc month-on-month to 510,000 b/d in November. </p><p class="bylines">By Ieva Paldaviciute</p></article>
