23 January 2023 | Other

China is still the biggest oil price driver

On Thursday, oil prices recorded their highest level since December 1. It was driven by the fact that the market sentiment got better amid increased demand for Chinese oil. 

Analysts said China's resurgence must boost oil demand and push it higher if most developed nations manage to avoid a recession. 

Clyde Russell, Reuters’ Asia Commodities and Energy Columnist, estimated that China likely accelerated the pace of crude stockpiling last year. That forecast was based on Chinese data on imports, domestic production and refinery volumes.

Increased  inventories in commercial and strategic storage may mean that China's imports may not be as massive as expected. Though it could also mean that refiners are preparing for a surge in demand these months once the wave of Covid after the restrictions’ lifting subsides.



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