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.
“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.”
Rugged Edge Computing for Tough Environments Follows Shift Away from the Cloud
At ISC West 2023, Premio showcases how Rugged Edge Computing can easily stand up to the toughest industrial workloads in the harshest environments without missing a beat. Many trends are shaping the modern security market with a strong focus on rugged hardware such as smart sensors. There is a shift away from the cloud […]
DTC Brands Struggle to Adapt With 2023 Consumers: Brand Trust and Flexibility is Necessary
Selling directly to the consumer buying your products can be incredibly profitable for a business, so why don’t all businesses sell directly to consumers? The simple answer is that there are many risks and challenges that come with running a direct-to-consumer (DTC) business, and the risks do not always pay off. The success […]
Voice AI: Changing the Sound of Restaurants and Transforming the Ordering Experience
Takeout and delivery are as much the fabric of restaurants today as a room full of diners. During the pandemic, many restaurants may not have made it out the other side without takeout and delivery services. Still, staffing shortages are a significant issue for most restaurants after the pandemic. Finding the balance between handling orders […]