Gasoline cargoes deferred after Malaysia extends curbs

Gasoline cargoes for June-July loading destined for Malaysia have been deferred because of reduced domestic demand following an extension of the country's Covid-19 movement control order (MCO).

Malaysia implemented a total lockdown during 1-14 June but has extended it to 15-28 June to stem rising Covid-19 cases in the country.

The exact details of the deferments cannot be confirmed but they are for cargoes loading during second-half June and possibly July as well, said market participants. Some loadings are deferred by about two weeks but it comes as no surprise as Malaysian gasoline demand has taken a hit during the MCO, said traders.

Malaysia's driving activity has fallen since the implementation of the MCO in June, according to mobility data from US technology firm Apple that give an indication of driving activity by tracking direction requests. Driving activity was at an average of 21.45pc below a 13 January 2020 baseline in May but fell to an average of 36.67pc below the same baseline from 1-16 June (see graph). Traders use driving activity as an indicator of gasoline demand.

By Aldric Chew

Malaysia driving activity