Amidst an ongoing global shift towards greener forms of energy, the International Energy Agency (IEA) has predicted that global oil demand will rise more than previously anticipated, partly due to China's economic rebound.
World fuel consumption will increase by 2.2 million barrels a day in 2023 — about 200,000 a day more than forecast before — to a record 102 million, the IEA said in its monthly report. The IEA anticipates that global oil demand will reach pre-pandemic levels by the end of next year, with China's rapid recovery contributing to the surge in demand.
The IEA report highlights the current demand for fossil fuels, even as countries and companies around the world are working towards carbon-neutral initiatives.
"The Chinese recovery has been faster and stronger than expected, and in March, Chinese demand reached an all-time high," Toril Bosoni, head of the agency's oil market division, said in a Bloomberg Television interview.
China's continued growth and increasing role in global markets serve as a reminder of the country's importance in the current global economic landscape. While oil market developments indicate that the global market may be shifting, the potential of China's economy growth cannot be ignored.
(With input from Bloomberg; Cover via CFP)