China, Feb 10 (TIWN): The dramatic sprint of crude oil toward $100/b is prompting Asian importers to rethink supply strategy as well as their fiscal roadmap, which could result in an aggressive recourse to strategic reserves, changes to fuel subsidies and taxes, and a much bigger push toward new energy alternatives, S&P Global Platts Analytics said.

Although the oil demand outlook for top consumers China and India looks resilient following a lengthy period of pandemic-hit uneven growth, keeping the oil import bill in check is one of the biggest priorities in Asia at a time when governments are desperate to allocate funds for economic revival, analysts said.

“High oil prices will dampen demand and will undermine the fragile economic recovery if they continue to rise,” said Lim Jit Yang, advisor for oil markets at S&P Global Platts Analytics.

Platts Analytics expects Asian oil demand to grow by 1.5 million b/d year on year in 2022, up from 1.2 million b/d in 2021, as the impact of the omicron coronavirus variant on Asian oil demand is expected to be relatively less severe than the delta strain, and with many countries moving toward reopening economies due to higher vaccination rates.