OPEC says that the oil demand in China recovers

OPEC says that  oil demand in China will recover due to the easing of anti-COVID restrictions. Also, the organization expressed optimistic expectations concerning the future of the world economy in 2023. 

A monthly report of OPEC states that in 2023, global demand for black gold will increase by 2.2%, that is, by 2.22 million bpd. The expectations didn’t change compared to December. 

The strengthening of the economy may cause an increase in oil demand and support the prices. OPEC is positive about the prospects of the world economy. However, the organization still expects a slowdown in GDP growth compared to 2022.

According to  report, economic growth would exceed expectations in the 4th quarter of 2022. This can create a solid ground for growth in the next year. The easing of anti-COVID restrictions will probably contribute to the recovery of oil demand in China. OPEC expects that  oil demand in China will increase by 510,000 bpd in 2023. 

The OPEC report also states that the risk of price reduction includes the growth of inflation. This may force central banks to continue monetary policy tightening.