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Global Crude Demand Forecasted To Hit Record On Full China Reopening


Free Vulcan:

China's pivot from awful zero Covid policies to reopening its faltering economy will boost global crude consumption to record levels this year, the Paris-based International Energy Agency wrote in a report Wednesday.

IEA's monthly report said global supplies of crude would exceed consumption by 1 million barrels per day in the first quarter of the year. China's move to reopen its economy will be the driving force behind tightening global fuel supplies to even more extreme levels.

The energy watchdog upgraded its outlook for China and said annual demand growth won't be realized until the second quarter.

"As China faces a challenging winter, its exit path will unquestionably be bumpy and drawn-out," the report said, adding, "hardships and disruptions, therefore, look set to prevail in the near-term" in the country.

IEA's forecast for oil demand growth this year was bumped from 200,000 barrels a day to 1.9 million barrels a day. Increasing consumption means it expects total annual oil demand to hit 101.7 million barrels daily- a record high.


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