The oil market rebounded last week after the United States imposed sanctions on Iranian firms that help export petrochemicals. While the market remained focused on supply concerns, the International Energy Agency expects oil demand to rise further in 2023, expanding more than 2% to a record 101.60 million barrels per day.
Moreover, analysts are optimistic about the lifting of COVID-19 restrictions boosting Chinese oil demand. UBS analyst Giovanni Staunovo said, “With supply growth lagging demand growth over the coming months, we continue to expect higher oil prices.”
