Oil demand in China to hit record levels this year

As shown in a survey of consultants conducted by Bloomberg, an increase in Chinese oil demand to the level of 800,000 barrels per day is expected to happen over this year. Thus, oil consumption is also suggested to rise and reach a record level of 16 million barrels per day.

Oil prospects for this year are now directly dependent on China. OPEC+ decisions, the effect of sanctions on Russian imports, and further paths of governments’ monetary policy are among other important factors impacting this type of fuel.

As it was stated by Yitian Lin, research associate of oils and refineries at Wood Mackenzie Ltd., a recovery in demand is forecasted for the second quarter of the year due to an increase in traffic and the number of flights, including international ones. Lin estimates that the demand will grow by 970,000 barrels.

Prospects of consumption growth were noted by several other experts as well. The International Energy Agency suggests that the global oil demand will rise by 1.7 million barrels per day in the current year. The Agency’s specialists link it to the rising oil needs of China and India.

At the same time, it’s expected that the wave of COVID-19 in China will get weaker in the next quarter, leading to greater mobility of the country’s citizens. This fact would lift the levels of fuel consumption and cause a price rebound, which is already expected by the experts. They suggest it to become notable in the second quarter of 2023.