- IEA’s Birol: China's oil demand bounce may push producers to reconsider output
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IEA’s Birol: China's oil demand bounce may push producers to reconsider output
“Oil producers may have to reconsider their output policies following a demand recovery in China, the world's second-largest oil consumer,” International Energy Agency (IEA) Executive Director Fatih Birol said on the sidelines of the India Energy Week conference on Sunday per Reuters.
Key comments
We expect about half of the growth in global oil demand this year will come from China.
If demand goes up very strongly, if the Chinese economy rebounds, then there will be a need, in my view, for the OPEC+ countries to look at their (output) policies.
Price caps on Russian oil have achieved the objectives of both stabilizing oil markets and reducing Moscow's revenues from oil and gas exports.
Fuel markets might face difficulties in the short term as global trade routes ‘reshuffle’ to accommodate Europe drawing on more imports from China, India, the Middle East and the United States.
That could force other markets such as Latin America to scout for alternative imports.
Fuel market balance could improve from the second half as more refining capacity is added globally.
WTI bears take a breather
The news allowed WTI crude oil bears to take a breather at the one-month low surrounding $73.50, following a three-day downtrend.
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