The executive director of the International Energy Agency, Fatih Birol said on Sunday that OPEC and other oil producers will have reconsider the policies guiding their outputs as China demands expected to surge after the COVID-19 disruption.
China is the largest world’s oil consumer, following the United State. It is also one of the countries with high demand for oil and gas.
Following this, there is likely going to be an upsurge of oil demand because of the ease of Covid restrictions in China.
As the country recovers, there is uncertainty about the global oil and gas markets. Investors bets on its recovery speed.
The director told Reuters during the India Energy Week conference, “We expect about half of the growth in global oil demand this year will come from China.”
He further stated that the demand for China’s jet fuel is fast rising inflicting pressure
“If demand goes up very strongly, if the Chinese economy rebounds, then there will be a need, in my view, for the OPEC+ countries to look at their (output) policies.”
At a meeting on Wednesday, OPEC+ decided to continue the group’s current output policy and maintain the production cuts agreed last year.