Oil producers may need to rethink their production decisions now that demand has increased in China. This was stated by the foreman of the International Energy Agency Fatih Birol, reports Reuters.
China, the world’s largest importer of crude oil and second largest buyer of LNG, can safely call itself the biggest driver of uncertainty in global oil and gas markets in 2023. Especially as investors are betting huge sums on the recovery of the l economy after the abolition of the zero-covid policy in December 2022.
“We expect more than half of global oil demand growth to come from China,” Birol told India Energy Week, adding that kerosene demand is also booming. “If demand continues to grow at this rate as China’s economy recovers, I believe OPEC+ countries will have to rethink their production decisions.”
Fury
In October last year, OPEC+ countries angered the United States and other Western countries by deciding to cut oil production by two million barrels per day from November 2022 to December 2023. At the time, they recommended an increase in production to lower fuel prices and help the global economy.
Birol hopes the same situation will not happen again and that OPEC+ – which includes OPEC members and allies such as Russia – will play a constructive role in the market once demand recovers.
Source: BNR
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