Oil demand may take hit

China's demand for oil may be dampened by the spread of swine flu, as the tourism and transportation sectors take the brunt of any possible pandemic, analysts said.

There would be further cuts in domestic fuel prices if global crude prices keep falling on fears that the spread of the epidemic could weaken global oil demand, they said.

"Cutbacks in international travel will compound drop in domestic jet fuel consumption," said Han Xiaoping, chief information officer of China5e.com, a website that tracks China's energy sector. "If the situation gets worse, non-freight public transportation such as buses and taxies will be affected, resulting in decreased oil consumption."