WTI recovers above $78 on upbeat IEA’s oil market report

In its latest oil market report published on Wednesday, the International Energy Agency (IEA) said that China reopening will drive oil demand in 2023 but still deficit could loom.

Additional takeaways

Russian oil exports to the EU declined 450,000 bpd in Jan.

Russian crude exports increased in Jan by nearly 300,000 MoM.

Russian oil output in jan was down only 160,000 bpd from pre-war levels.

Global oil output set to rise 1.2 mln bpd in 2023, driven by non-OPEC+ producers.

Uptick in air traffic emphasises central role of jet fuel in 2023 demand growth.

Supply-demand balance could quickly shift to deficit as demand recovers, some Russian output shut in.

World oil supply looks set to exceed demand through the first half of 2023.

China set to account for 900,000 bpd of 2023 oil demand growth after COVID-19 reopening.

Global oil demand is set to rise by 2 mln bpd in 2023, to 101.9 mln bpd.

Market reaction

WTI is cutting losses from near daily lows of $77.84 to regain the $78 mark, in the wake of the upbeat IEA’s outlook on global oil demand. The US oil is still down 1.65% on the day.