Rising Chinese demand will be the main driver of higher crude prices this year. A 500,000 bpd drop in Russian crude output could tip the balance in global oil markets. IEA: global oil demand will hit a record high in 2023.
The stage seems set for higher prices. Oil demand globally will hit a record high, according to the International Energy Agency. OPEC is sticking to its limited production agreement. Russia has announced a 500,000-bpd cut to its crude oil output this month. U.S. oil producers have repeatedly signaled they will not be prioritizing production growth. In the end, it’s all about the balance between supply and demand. When the former tightens, and the latter remains robust, prices inevitably rise.
I always hear it is about supply and demand but what I think it’s really about is $$$. The people who control the amount of oil that’s being pumped will not let there be a glut that drives down prices and hurts profits IMHO…doc