China’s oil demand is expected to increase by 710,000 barrels per day in 2023 compared to last year’s forecast.
OPEC raised its forecast for oil demand growth in China in 2023 due to the easing of restrictions related to the coronavirus. This was reported by Reuters.
As noted in the monthly report of the Organization of the Petroleum Exporting Countries, global oil demand in 2023 will increase by 2.32 million barrels per day, or 2.3%. The numbers are unchanged from last month’s forecast.
It was also reported that the rapid demand in China could support the oil market. As you know, oil prices fell this week as the collapse of Silicon Valley Bank raised fears of a new financial crisis. OPEC cited potential downside risks for the global economy due to higher interest rates.
“China’s opening up after the lifting of the strict zero-counter policy on COVID-19 will provide a significant boost to global economic growth,” OPEC said in a report.
However, “rapid increases in interest rates and global debt levels can generate significant negative spillovers and negative effects on the global growth dynamic.”
China’s oil demand is expected to increase by 710,000 bpd in 2023, compared with last year’s forecast of 590,000 bpd and a decline in 2022.
Global results remained stable due to downward changes in other countries, including the United States and Europe.
OPEC is cautious about the economic outlook, leaving its global growth forecast for 2023 at 2.6%.
Recall that world prices for reference grades of oil fell sharply on the first working day of the week on the news of the closure of banks in the United States.
It was also reported that global financial stocks lost $465 billion due to the bankruptcy of SVB.
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Source: korrespondent
I am David Wyatt, a professional writer and journalist for Buna Times. I specialize in the world section of news coverage, where I bring to light stories and issues that affect us globally. As a graduate of Journalism, I have always had the passion to spread knowledge through writing.