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Oil Market Faces Bigger Surplus Even as China Reopens

  • Supply may exceed demand by 1 million b/d in first quarter
  • Russian resilience bolsters outlook for non-OPEC output
Updated on

Global oil markets face a bigger surplus this quarter than previously expected, with demand still constrained despite China’s bid to reopen its economy from Covid lockdowns.

World supplies will exceed consumption by roughly 1 million barrels a day in the first three months of the year, the International Energy Agency said in a monthly report. While the organization made a modest upgrade to its outlook for China after the easing of restrictions, it doesn’t expect to see annual demand growth there until the second quarter.