Bullish sentiment builds as China’s recovery continues, OilPrice said.

IEA expects record oil demand in 2023.In its monthly oil report, the International Energy Agency said the lifting of coronavirus restrictions in China is set to propel global oil demand to its highest on record, soaring from its current 100 million b/d to almost 104 million b/d by the end of 2023. Aramco warns about future supply.The head of Saudi Aramco Amin Nasser warned that despite the relative balance in the oil markets currently, we are facing a substantial supply shortfall in the long term if global upstream investment does not start to surpass accelerating rates of natural decline.

Oil bulls appear to have gained the upper hand this week as China’s recovery continues and both the IEA and OPEC raised their global demand forecasts. Brushing aside the massive inventory build in the US, the market is starting to fall for China’s demand rebound. Both OPEC and the IEA raised their global demand forecasts for 2023, arguing that the second half of this year would see rapid growth in Asian buying. So it looks like oil bulls have gained the upper hand despite some worrying economic data and refinery problems in the U.S.