After China dropped its zero-Covid policy, the world’s oil demand surpassed pre-pandemic levels in the final three months of 2022, and it will continue to rise this year, according to OPEC.
According to the Saudi-led oil cartel, demand increased to 101.17 million barrels per day in the fourth quarter from 99.76 mpd during the same period in 2019.
The prior estimate, which was already above pre-Covid levels, increased by 100,000 each day.
“Key to oil demand growth in 2023 will be the return of China from its mandated mobility restrictions and the effect this will have on the country, the region and the world,” OPEC said in its monthly market report.
Beijing abruptly stopped the zero-Covid policy in December, ending nearly three years of severe health restrictions that had harmed the economy and sparked huge protests.
In the final three months of 2022, global oil demand increased to 101.17 million barrels per day from 100.79 mbd in the three months prior to the epidemic in 2019.
In spite of rising demand, the 13-nation OPEC and its 10-nation producer club, OPEC+, led by Russia, decided in October to cut production by two million barrels per day through the end of the year.
Following the imposition of a price restriction on its petroleum goods by Western nations in response to Moscow’s invasion of Ukraine, Russia said last week that it will reduce its crude production by 5% starting in March.
