Dow Jones Newswires: Oil demand to hit record level this year as China reopens, says IEA

by | Jan 18, 2023 | Stock Market

China’s rapid shift to reopen its economy following years of Covid-19 lockdowns should help oil demand rise to a record level this year, the International Energy Agency said Wednesday. The energy watchdog lifted its forecast for oil-demand growth this year by nearly 200,000 barrels a day to 1.9 million barrels a day. The extra demand means that the IEA now expects total oil demand this year to average 101.7 million barrels a day, well above prepandemic levels and an all-time record amount.

Beijing’s rapid pivot away from its zero-tolerance approach to Covid-19 cases has largely taken the oil market by surprise and boosted hopes that China’s reopening could swiftly herald a rebound in the nation’s oil demand. A similarly sudden turnaround for the fortunes of economies in Europe and the U.S. is also boosting oil-demand expectations, the IEA said. Europe’s economy is expected to fare better than first thought this year, as warmer temperatures have eased its energy supply crisis. Meanwhile, the Federal Reserve’s efforts to tame inflation have shown recent signs of success. In its report, the IEA pointed to “a faster than anticipated reopening of China” and a somewhat improved economic outlook, as …

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