THE lifting restrictions against the Covid epidemic in China will spur global demand oil at new record levels, announced the International Energy Agency (International Energy Agency, IEA), while the imposing a cap on Russian oil is likely to reduce supply.
“Two wild cards will dominate the 2023 outlook: Russia and China,” the International Energy Agency said in its monthly report.
“Russian supplies are slowing under the sanctions regime, while China will account for half of this increase in global demand, even as the shape and speed of (the Chinese economy’s) opening remains uncertain.”
Weak industrial activity and mild weather conditions, as reported by APE-MPE, contributed to decrease in demand by about one million barrels per day in developed OECD countries in the last quarter of 2022.
But despite possible mild recessions in Europe and the United States, China’s expected opening is expected to fuel recovery in its neighboring Asian economies, with China taking India’s lead globally in oil demand growth.
Source: News Beast
Bruce Belcher is a seasoned author with over 5 years of experience in world news. He writes for online news websites and provides in-depth analysis on the world stock market. Bruce is known for his insightful perspectives and commitment to keeping the public informed.