Chinese Oil Demand in Recovery but Further Russian Supply Disruptions Loom, ANZ Bank Says

Crude oil demand could be picking up again in China, but the market remains wary of increasing disruption to Russian supplies, Australia’s ANZ Bank said in a Wednesday note.

Oil trader Vitol said Chinese demand is recovering in a market that is struggling to increase supplies, driven by easing lockdowns in cities such as Shanghai and Beijing, the bank noted. Vitol forecast an increase of 1 million barrels per day in China’s oil consumption by the end of the year.

Meanwhile, the European sanctions on Russian oil have yet to kick in. Europe has received nearly 14 million barrels of diesel-type fuel from Russia since the invasion of Ukraine, ANZ Bank said, citing data from Bloomberg. This is a relatively limited drop off from pre-war levels.

Both Exxon Mobil and the International Energy Forum expect prevailing tightness in oil markets, according to ANZ Bank. Exxon sees tightness for another three to five years due to a lack of investment. The IEF also said the global investment is seen to be stagnant this year and may even decline as producers grapple with volatile prices.

About Stu Turley 1817 Articles
Stuart Turley is President and CEO of Sandstone Group, a top energy data, and finance consultancy working with companies all throughout the energy value chain. Sandstone helps both small and large-cap energy companies to develop customized applications and manage data workflows/integration throughout the entire business. With experience in implementing enterprise networks, supercomputers, and cellular tower solutions, Sandstone has become a trusted source and advisor in this space. Stuart has led the “Total Corporate Digital Integration” platform at Sandstone and works with Sandstone clients to help integrate all aspects of modern digital business. He is also the Executive Publisher of, the best source for 24/7 energy news coverage and is the Co-Host of the energy news video and Podcast Energy News Beat. Stuart is on Board Member of ASN Productions, DI Communities Stuart is guided by over 30 years of business management experience, having successfully built and help sell multiple small and medium businesses while consulting for numerous Fortune 500 companies. He holds a B.A in Business Administration from Oklahoma State and an MBA from Oklahoma City University.