Oil demand picking up ...cheers Oil Market Driven by Sudden Changes in Assessments of Supply, Demand, Commerzbank Says
07:27 AM EST, 02/28/2023 (MT Newswires) -- The oil market has recently been pulled back and forth by sudden changes in market participants' assessments of supply and demand, with a focus on oil supply from Russia and oil demand in China, Commerzbank said in a Monday note.
Western sanctions against Russia have had a noticeable impact on oil supply and shipping routes, with the EU having almost completely halted Russian oil imports and Russia having to reroute supply to Asia at steep discounts, the bank noted.
Meanwhile, China's oil demand is forecast to rise by 900,000 barrels per day on average for the year, according to the International Energy Agency, almost half of the expected increase in global oil demand.
Other signs that oil demand in China is picking up include Saudi Arabia raising official selling prices for oil shipments to Asia in March for the first time in six months, as well as China significantly increasing import quotas for crude, Commerzbank said. China appears to be making sure refineries can replenish stocks for an expected boom in demand, according to Commerzbank.