Oil prices are rising on expectations of higher demand in China

The price of WTI oil rose to $81 per barrel, and this is its highest level since early December. As it was said by OPEC Secretary General Haitham Al-Ghais, after recent forecasts of a balanced oil market in the current quarter, he is “cautiously optimistic” regarding the global economy.

A new monthly market analysis prepared by the International Energy Agency (IEA) is about to be released on Wednesday. The updated information will likely reflect fast changes in China, as well as a possible effect of sanctions on Russian exports.

According to a statement made by Warren Patterson, head of commodities strategy at ING Groep NV, the economic recovery in China reinforces confidence that oil demand will return to high levels in 2023. He added that the market will closely monitor today’s IEA report for any signs of possible changes in demand.

Besides that, one of China’s top economic officials stated that the nation’s economy will probably return to its pre-pandemic growth trend in 2023. This statement reflects a generally optimistic sentiment in China, the most significant crude oil importer in the world. According to a Bloomberg survey, analysts expect that growth in oil consumption in the country will reach record highs during this year.