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China Oil Demand Growth in 2023 Estimated at 950kb/d: CICC

OIL PRODUCTS

China’s oil demand growth this year is estimated at 950kb/d according to CICC, up from the previous forecast of 800kb/d on stronger consumption of naphtha, fuel oil and petro-coke.

  • The apparent oil demand forecast has been increased from an earlier estimate of 6.2% to 7.3% y/y according to the bank on Saturday.
  • Rising demand for products such as jet fuel, gasoline and bitumen will still drive yearly total oil demand growth.
  • Recovery in consumption will support demand for light-end petchem products such as naphtha, while a rebound in international shipping and domestic trade will boost fuel oil.
  • Naphtha demand growth in 2023 was increased to 8.3% y/y (146kb/d) and fuel oil demand is estimated to rise by 10% (103kb/d).

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