IEA says global oil demand could hit a record this year as China reopens (NYSEARCA:USO)
The International Energy Agency reported on Wednesday that China’s swift reopening following COVID-19 restrictions will likely push global oil demand to a new record high in 2023, while Price-ceiling sanctions on Russia could limit supply.
In that is Monthly oil market reportThe IEA raised its oil demand growth forecast for this year by nearly 200,000 bpd to 1.9 million bpd, which would lift demand to an all-time record of 101.7 million bpd. .
While raising China’s demand forecast by 100,000 bpd to 15.9 million bpd, the IEA warned China’s reopening could be “bumpy and protracted”, noting “reports” underreporting large numbers” of COVID-19 cases and a weak economy.
Nymex crude oil last month (CL1:COM) closed -0.8% on Wednesday to $79.48 a barrel, marking a series of eight consecutive price increases, while Brent oil. rough (CO1:COM) settled -1.1% to $84.98/barrel.
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The IEA said in its report: “The oil balance that is fully supplied in early 2023 could rapidly tighten.”
Many oil market watchers concur with Goldman Sachs expecting a “bullish concoction” for commodities and hedge fund manager Pierre Andurand crude oil forecast to soar to $140/bbl.