Dear clients,
Oil consumption in China, the world’s largest importer, has strongly risen since the coronavirus lockdown was lifted, OPEC member Kuwait assured.
„There is pent-up demand that has built up during the pandemic“, said Sheikh Nawaf Al-Sabah, chief executive officer of Kuwait Petroleum Corp. „Now, after the opening, we are seeing a steady increase in demand. It’s not a dead-cat rebound.“
Traders are closely watching China, believing that the pace of its recovery will be the most important factor determining the movement of energy prices this year.
Brent has fallen nearly 7% since late December to just over $80 a barrel, largely because data from China showed the economic recovery has been patchy. However, analysts including Goldman Sachs Group Inc. and Morgan Stanley, predict that the price will exceed $100 in the second half of the year.
Kuwait is the fourth largest oil producer in the Organization of the Petroleum Exporting Countries. It exports about 2 million barrels a day, or 2% of the world’s supply, and China is its biggest buyer.
