The International Energy Agency maintains that if the Chinese economy recovers, it will be necessary for the OPEC+ countries to analyze their production policies, currently reduced by 2 million barrels per day.
The Chinese economy, the world’s second-biggest oil-consuming country, could be about to experience a stronger-than-expected rebound that would boost demand for oil and natural gas, according to the executive director of the International Energy Agency (IEA). Fatih Birol.
“We expect about half of the growth in global oil demand this year to come from China,” Birol told Reuters.
He added that demand for jet fuel in the Asian giant is soaring, putting upward pressure on demand. “If the demand increases very strongly, if the Chinese economy recovers, then it will be necessary, in my opinion, for OPEC+ countries to look at their (production) policies,” he said.
The director said that “early signs” from China point to growth accelerating more than expected, generating about half of the projected 2 million barrels a day increase in global oil demand this year.
Rising Chinese demand will have a pronounced impact on liquefied natural gas as volumes currently reaching the market are among the lowest ever, according to IEA data, Birol said.
The OPEC+ producer group in October last year decided to reduce production by 2 million barrels per day, about 2% of world demand, from November last year until the end of 2023 to support the market.
With information from Bloomberg Línea and Reuters.
Source: Larepublica
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