The lifting of Covid-19 restrictions in China is set to boost global oil demand this year to a new record high, the International Energy Agency (IEA) said on Wednesday, while price cap sanctions on Russia could dent supplies. Despite possible but likely mild recessions in Europe and the United States, China’s reopening is set to fuel rebounds in nearby Asian economies and see it take the lead from India as the world’s leader in oil demand growth, IEA said. The group says China will account for nearly half of 2023 oil demand growth, which it forecasts will rise 1.9 million barrels per day (bpd) to a record 101.7 million bpd.
Meanwhile the main growth in oil supply is set to come from the U.S. as output from OPEC+ will decline by 870,000 bpd, led by Russia.
