Could China’s Re-Opening Fuel Higher Energy Costs?

After nearly three years of Covid isolation, one of the world’s largest economies has begun to reopen. As China re-emerges from intense lockdowns, new fear over global oil demand sparks economic woes. But will Chinese demand for fuel spill out into global markets?

Posting a 3% growth rate GDP for the 4th quarter, the Chinese economy continues to grow, but at a lesser rate than previously predicted for Q4. Despite the possibility of increased demand from China, global oil remains steady as of now. This may be, in part, due to their supplier – Russia.

The Russian invasion of Ukraine has curbed many nations from purchasing from the oil exporter. China’s purchase of crude oil from Russia means that those expected rising fuel costs might not hit the rest of the world. Tim Snyder, Chief Economist with Matador Economics provides his insight on the possibility of rising fuel prices.

 

Tim’s Thoughts:

“There’s a great deal of hype surrounding the Chinese reopening of the economy and the apparent slowdown of covid cases. However, earlier this week, the Chinese posted a 3.0 GDP for their fourth quarter of 2022, down from last year’s average of about 8.2%. If they’re going to create resurgent demand, they have a long way to go.

China’s reopening of their economy is feeling speculation that increased demand may just materialize in higher energy prices here in the United States and abroad. If higher demand materializes, it will rekindle inflation here in the US. With China reopening out of covid shutdowns, there is speculation that Chinese demand for energy products will reemerge across the globe.

But China is currently focusing its purchases of crude oil from Russia, begging the question, will the demand pull from China spill out from Russia and into the United States, reigniting fuel prices and inflation? This certainly is a possibility.”

Article written by Marissa Martin

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

Image

Latest

College admissions
Getting Elite Level Support for College Admissions with ESAI Founder Julia Dixon
May 12, 2025

College admissions have long favored those with access—whether that’s legacy ties, zip code advantages, or the ability to afford pricey private consultants. But now, the game is changing. Artificial Intelligence is emerging as a powerful equalizer in education, and one startup is turning that promise into reality. Just days ago, Shark Tank investor Mark…

Read More
AI
Classroom AI: Who Should It Serve First—Teachers or Students?
May 12, 2025

Artificial intelligence is rapidly transforming nearly every sector, and education is no exception. As AI capabilities evolve, tech giants like OpenAI, Google, and Meta have increasingly showcased education as a core use case in product rollouts. But the tools being created often split along a critical divide: are they meant for teachers, or for…

Read More
Human Intelligence
JUST THINKING… About Artificial Intelligence vs. Human Intelligence with Dr. Michael Harvey
May 12, 2025

As artificial intelligence continues to evolve at lightning speed, the conversation is shifting from what AI can do to what it should do—and how it compares with, or complements, the uniquely human traits we bring to learning, work, and society. While schools grapple with AI’s integration into classrooms, some educators are asking a deeper question:…

Read More
future of remote work
Productivity, Happiness and the Future of Remote Work with Steven Puri
May 12, 2025

Remote work is no longer an experiment, it is a daily reality for millions. Yet, as teams seek focus and fulfillment outside the traditional office, the challenges of productivity and isolation have intensified. Studies show that nearly 70 percent of remote workers struggle with burnout and distractions. Amid this tension, platforms that blend emotional well-being…

Read More