Oil rises in price due to forecast of demand growth in China

According to the reports, the price of WTI crude oil futures rose after falling 8% last week and currently is $75 per barrel. In an interview with People's Daily, a representative of the People's Bank of China shared his views on the country's economic future. In his opinion, economic growth in China may recover only if the authorities allocate more funds to support households and companies.

As Sean Lim, an analyst at RHB Investment Bank Bhd, notes, it will take time to see how the borders’ opening affects the rest of the world. Demand may remain at the same low level, but OPEC+, according to the analyst, will be able to support oil prices. The oil market is expected to find balance in the medium term.

At the beginning of the year, oil was not doing so well, as shown by two facts. Firstly, the forward curves reflected a high level of supply. Secondly, due to low liquidity, futures prices were subject to strong fluctuations. However, many people believe that oil prices will rise. For instance, Pierre Andurand, a hedge fund manager, expects the price increase above $140 per barrel this year. In his opinion, this is possible after the complete removal of COVID restrictions in Asia.