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Crude Oil Price Forecast: Demand Projection Fueled by Chinese Growth Outlook

March 7, 2023

Via: DailyFX

Crude oil is looking for its 6th consecutive positive day this Tuesday which has gathered steam from positivity around the Chinese economy. Although China revised growth forecasts (GDP) higher to 5% after a roughly 3% last year, markets were expecting something in the range of 5.5-6%. Markets have since dismissed this and seem to be focusing on the fact that there is a marked improvement which should lead to higher oil consumption while heightening the chance for GDP figures to outstrip the 5% projection. The end of 2022 saw an increase in stockpiles and thus spare capacity but since the China ‘re-open’ and removal over COVID restrictions came into play, this seems to be on the decline.

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