China’s economic growth slowed sharply to the 3% in 2022missing the official target of “around 5.5%” and marking its second worst result since 1976. Howeverthe data exceeded analysts’ forecasts after China began rolling back its “zero COVID” policy in early December. Analysts polled by Reuters see a growth rebound in 2023 to 4.9%.
According to International Energy Agency (IEA)), the lifting of COVID-19 restrictions in China will boost demand world oil prices this year to a new record, while the sanctions imposed on Russia in terms of maximum prices could reduce the offer.
The IEA report followed expectations by the Organization of the Petroleum Exporting Countries (OPEC) that Chinese oil demand would grow by 510,000 barrels per day (bpd) this year after contracting for the first time in years in 2022 due to the COVID containment measures.
OPEC, however, kept its global demand growth forecast for 2023 unchanged.
The expectations of a reduction of crude oil inventories in the United States of 1.8 million barrels in the week ending Jan. 13, according to a Reuters poll, also contribute to the rise in oil.
On the supply side, the production of oil from the main shale regions of The United States will increase by about 77,300 bpd until reaching the number record 9.38 million bpd in Februaryas reported on Tuesday by the US Energy Information Administration (EIA).
Source: Ambito
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