Young Research & Publishing Inc.

Investment Research Since 1978

Compensation was paid to utilize rankings. Click here to read full disclosure.

  • About Us
    • Contributors
    • Archives
    • Dick Young’s Safe America
    • The Final Richard C. Young’s Intelligence Report
    • You’ve Read The Last Issue of Intelligence Report, Now What?
    • Dick Young’s Research Key: Anecdotal Evidence Gathering
    • Crisis at Vanguard
  • Investment Analysis
    • Bonds
    • Currencies and Gold
    • Dividend Investing
    • ETFs & Funds
    • Investment Strategy
    • Retirement Investing
    • Stocks
    • The Efficient Frontier
  • Investment Counsel
  • Retirement Compounders®
  • Free Email Signup

Will Increasing Chinese Demand Send Oil Prices Soaring?

January 18, 2023 By Jeremy Jones, CFA

By Comdas @ Shutterstock.com

Will an increase in oil demand from China following the end of its COVID-19 restrictions drive the price of oil higher? Tom Wilson reports on IEA projections that demand will reach new highs. He writes in the Financial Times:

Global oil demand is set to rise to an all-time high in 2023 as China relaxes its Covid-19 restrictions in a move that may push crude prices higher in the second half of the year, according to the International Energy Agency.

Demand for crude oil could rise 1.9mn barrels a day to reach a record 101.7mn b/d, while the evolving impact of western sanctions on Russia threatens to constrain supply, the IEA said in its first monthly oil report of 2023.

“Two wild cards dominate the 2023 oil market outlook: Russia and China,” the report said, adding that robust demand growth would tighten “the balances as Russian supply slows under the full impact of sanctions”.

Crude prices soared last year to near record highs amid fears of disruption to oil markets following Russia’s full invasion of Ukraine, but then fell back as Russian supply held up and an economic slowdown crimped demand, particularly in Europe.

The Paris-based IEA, which advises governments on energy policy, said Russian oil supply had “held steady” in December, at 11.2mn b/d, despite the introduction of EU sanctions on the import of Russian crude.

However, it forecast that the “well-supplied” global oil market at the start of the year could “quickly tighten” as western sanctions — particularly an EU ban on the import of refined Russian products from February 5 — take full effect.

Prices for Brent crude, the international benchmark, climbed 1.4 per cent on Wednesday morning to more than $87 a barrel.

Growing optimism that Chinese demand will recover this year has helped oil prices rally by around 10 per cent in the past week.

The IEA said nearly half of the forecast rise in oil consumption this year would come from China even though “the shape and speed” of the country’s reopening remained uncertain.

Read more here.

Share this:

  • Email
  • Twitter
  • Facebook

You Might Also Like:

  • Oil Demand Feeling Pressure from High Prices
  • Post-Pandemic: Oil Demand Expected to Rise Quickly
  • Worries Over Delta Variant Hit IEA Oil Demand Forecast
  • Author
  • Recent Posts
Jeremy Jones, CFA
Jeremy Jones, CFA, CFP® is the Director of Research at Young Research & Publishing Inc., and the Chief Investment Officer at Richard C. Young & Co., Ltd. CNBC has ranked Richard C. Young & Co., Ltd. as one of the Top 100 Financial Advisors in the nation (2019-2022) Disclosure. Jeremy is also a contributing editor of youngresearch.com.
Latest posts by Jeremy Jones, CFA (see all)
  • Money Market Assets Hit Record High: $5.4 Trillion - May 26, 2023
  • The Mania in AI Stocks Has Arrived - May 25, 2023
  • The Wisdom of Sam Zell - May 24, 2023

Search Young Research

Most Popular

  • Wellington and Wellesley Funds Not Managed by Vanguard
  • The Single Worst Market Timing Event in History
  • “No Way I’m Spending That Much on Those”
  • The Power of a Compound Interest Table
  • Should America Move Closer to the Saudis, or Push them Away?
  • The War Machine's Manpower Problem
  • Will the Fed Hold Up Its End of the Bargain?
  • Vanguard Wellesley (VWINX) vs. Wellington (VWELX): Which Fund is Best?
  • “You Didn’t Eat That Again, Did You?”
  • Mr. Protect and Preserve: For Where We’re Going

Don’t Miss

Default Risk Among the Many Concerns with Annuities

Risk and Reward: An Efficient Frontier

How to be a Billionaire: Proven Strategies from the Titans of Wealth

Cryptocosm and Life After Google

Warning: Avoid Mutual Fund Year End Distributions

Is Gold a Good Long-term Investment?

How to Invest in Gold

Vanguard Wellington (VWELX): The Original Balanced Fund

What is the Best Gold ETF for Investing and Trading?

Procter & Gamble (PG) Stock: The Only True Dividend King

The Dividend King of the North

You’ll Love This if You’re Dreaming of an Active Retirement Life

The Importance of a Balanced Portfolio

Invest with Peace of Mind and Comfort

What Kind of Life Are You Investing For?

RSS The Latest at Richardcyoung.com

  • The Elephant in the Room
  • “Then One Day the Grandfather was Gone”
  • My Key West Garden Office
  • OPERATION MOCKINGBIRD: The Truth About the CIA?
  • Does a New Antiviral Covid Drug Do More Harm than Good?
  • The Biden Regime Treats Americans Worse than Illegal Immigrants
  • Key West #1 Wine Shop & Wine Expert
  • California – First to Enact Statewide Gun and Ammo Tax
  • “No Way I’m Spending That Much on Those”
  • How Much Can Grid Battery Storage Help?

RSS The Latest at Yoursurvivalguy.com

  • “Then One Day the Grandfather was Gone”
  • How Joe Biden Raised Oil Prices
  • Is the Philadelphia Looting Spree the Wake-up Call America Needs?
  • “No Way I’m Spending That Much on Those”
  • What Trade Policy Serves America’s National Interest Best?
  • California Wants to Make the 2nd Amendment Unaffordable
  • “You Didn’t Eat That Again, Did You?”
  • Is McCarthy Up to the Task?
  • Rising Costs Are Hammering Commercial Real Estate
  • Your Survival Guy Fishing with Dolphins

About Us

  • About Young Research
  • Archives
  • Contributors

Our Partners

  • Richard C. Young & Co.
  • Richardcyoung.com

Copyright © 2023 | Terms & Conditions

 

Loading Comments...
 

    loading Cancel
    Post was not sent - check your email addresses!
    Email check failed, please try again
    Sorry, your blog cannot share posts by email.