More oil may still be needed due to higher demand from China | Economy

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05 feb 2023 om 18:09Update: een uur geleden

Countries that supply a lot of oil may need to increase their production. Demand from the world’s second largest oil consumer China is picking up once more, said International Energy Agency (IEA) CEO Fatih Birol.

“We expect regarding half of the growth in global oil demand this year to come from China,” said Birol. According to him, the demand for jet fuel in the Asian country is currently exploding.

China recently stopped a strict zero-covid policy. As a result, many Chinese can finally travel once more. “If demand rises very strongly – if the Chinese economy recovers – OPEC+ will have to look at production policy.”

Oil cartel OPEC and allies such as Russia are collectively referred to as OPEC+. They decided at the beginning of this month to leave the production level untouched. For the time being, oil production will continue to be cut by two million barrels per day, in order to prop up prices. This will last until the end of 2023.

In October, the oil countries’ policies drew the wrath of the United States and other Western countries. The US, in particular, then pressed for an increase in oil production. This would lower fuel prices to help the global economy.