Explore the latest trends and actionable insights on the China Oil & Gas Exploration and Production market to inform business strategy and pinpoint opportunities and risks

China's Lockdown Hinders Global Oil Demand

  • China's economy, the world's second-largest, is proving to be the global laggard in oil demand
  • Among other nations, oil demand has remained surprisingly robust despite high inflation, rising interest rates, and slowing economic growth
  • While most nations have all but removed their pandemic-era movement restrictions, China's zero-Covid policy sees it continue to impose strict lockdowns in response to new cases, undermining economic growth and oil demand

The International Energy Agency said on September 14, 2022, that weaker crude demand in China, where the economy is experiencing stop-start Covid-19 lockdowns, outweighs strong crude demand elsewhere in the world and will restrain oil demand growth this year, 2022.

As the economy faces stop-start Covid-19 lockdowns, weaker demand for oil in China outweighs robust crude demand elsewhere in the world and will crimp oil demand growth this year, as the International Energy Agency said on September 14, 2022. The crude oil and condensate production in China increased significantly, according to GlobalData.

China, the world's second-largest economy, is the global laggard in oil demand. Among other nations, oil demand has remained surprisingly robust despite high inflation, rising interest rates, and slowing economic growth. The IEA said that oil demand in the US is proving stronger than expected, while Middle Eastern demand is also strong as hot temperatures prompt above-average demand for oil-fired electricity generation.

While most nations have removed their pandemic-era movement restrictions, China's zero-Covid policy sees it continue to impose strict lockdowns in response to new cases, undermining economic growth and oil demand. The IEA said domestic oil demand is suffering most from the lockdowns, lowering its forecasts for the nation's domestic demand by 890,000 barrels a day. Still, the IEA said that China's struggles are being countered by strong demand elsewhere and should have a limited impact on global oil balances.

Explore the latest trends and actionable insights on the China Oil & Gas Exploration and Production market to inform business strategy and pinpoint opportunities and risks Explore the latest trends and actionable insights on the China Oil & Gas Exploration and Production market to inform business strategy and pinpoint opportunities and risks Visit Report Store
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