China’s oil demand to see a bumpy recovery

Oil demand in China is expected to grow as 'Zero Covid' strategies were abandoned by the officials. At the same time, analysts believe that it may take some time for the demand to recover. 

Energy Aspects Ltd. revised up its forecast for oil demand growth for the first quarter of 2023 by 260,000 barrels a day. According to analysts, gas and jet fuel consumption will grow in particular due to the removal of travel restrictions. 

Such developments will support oil prices that are well below this year's highs. However, if China reports record high COVID-19 infections, it could cause prices to fluctuate. 

Zhang Xiao, an analyst at Oil Chem, noted that people in China may still have fears of going out as the spread of COVID-19 in China is uneven. In his view, gasoline use may fall soon as people avoid travel, and it is unlikely to recover until March.