Global Oil Demand Skyrockets with China Re-open for Business

 

Three years of strict COVID policies in China ended in December 2022. This reopening of China’s economy pushes global oil demand to hit its highest-ever level.

International Energy Agency estimates indicate oil demand could surge by 1.9 million barrels per day for a record-setting 101.7 million barrels per day.

“China will drive nearly half this global demand growth even as the shape and speed of its reopening remains uncertain,” the IEA said.

And while the total economic reopening of China is a long-time coming, those easing of restrictions do come at a cost. China is facing the world’s most significant COVID surge of the pandemic, with China’s public health officials estimating a potential 800 million people could be infected.

How will all these factors impact oil prices, which have risen along with the increase in oil demand? Ehud Ronn, Professor of Finance at the University of Texas, offered his perspective.

Ronn’s Thoughts

“I’d like to comment on the changes in the oil markets that have occurred since the beginning of the year, seemingly and apparently in conjunction with the opening of the Chinese market to further travel and trade activities. The first thing to note is that oil prices, since around the 4th of January, have gone up by about eleven percent, apparently in concert with that opening that is scheduled and occurring.

The second thing we’ve seen is that the correlation between the oil markets and the equity markets, specifically the S&P 500, has strengthened over this period. So, I’ll be submitting both of those documents as a way of bolstering that which I’m asserting, which is that the opening of the Chinese market has given rise to a strengthened demand for oil, which has culminated in a rise in both oil prices as well as the stronger linkage we see between oil markets and the equity markets, which is typical of a situation in which we have a demand side response on the oil markets to an increase in demand.”

Follow us on social media for the latest updates in B2B!

Image

Latest

visitor management solution
Reinventing Visitor Management Solution with Symmetry GUEST
April 2, 2025

In an age where speed and security are paramount, the traditional paper logbook is becoming a relic of the past. AMAG Technology’s Symmetry Guest system offers a modern, digital solution that redefines the way organizations welcome and manage visitors. Gone are the days of long lines and confusion at the front desk—Symmetry Guest empowers hosts…

Read More
AMAG
Driven by Customers, Defined by Innovation: Inside AMAG’s Customer-Obsessed Approach
April 2, 2025

AMAG Technology continues to strengthen its customer-obsessed culture by actively listening to both internal and external voices. As shared by Kyle Gordon, Executive Vice President of Global Sales, Marketing, & Commercial Excellence, the company is focused on improving processes, responding with speed, and driving innovation—while honoring its legacy and delivering unique value within the industry.

Read More
biotech
Biotech Moves Smarter: IDDI Powers Data-Driven Drug Innovation
April 2, 2025

As biotech innovation accelerates, small and mid-size pharmaceutical companies are becoming key players in bringing new treatments to market. Yet many of these organizations face steep challenges when navigating clinical trial design, regulatory approval, and data integrity. According to a McKinsey Global Institute report, industries like biotech could help generate up to $50 trillion…

Read More
AMAG Technology
AMAG Technology Drives Positive Change, Product Innovation, and Stronger Partnerships with the Customer in Mind
April 2, 2025

At AMAG Technology, customer obsession is at the heart of everything the company does. Customer Relationship Manager Aimee Walsh shares how AMAG embraces positive change, enhances its products, and strengthens partnerships—all with the customer in mind. Her insights reflect AMAG’s ongoing commitment to evolving alongside customer needs and delivering meaningful solutions.

Read More