The International Energy Agency (IEA) estimated in its Oil Market Report (OMR) for January 2023 published on Wednesday that this year, the global demand for the commodity will increase by 1.9 million barrels per day (bpd) to a record 101.7 million bpd. On the other hand, the supply growth will decline to one million bpd.
The IEA projected that the easing of coronavirus-related restrictions in China will contribute to approximately half of the rise in demand. It also highlighted China and Russia as two major factors for the situation in the global market due to a potential reintroduction of the COVID-19 measures in the former and sanctions on energy products from the latter country.
"The well-supplied oil balance at the start of 2023 could quickly tighten however as western sanctions impact Russian exports," it warned. "Fresh supplies from new plants in the Middle East and from China will provide welcome relief."
