Over the weekend, the Organization of Petroleum Exporting Countries and its allies agreed to extend their existing production cuts by one year to the end of 2024. On top of that, Saudi Arabia said it would make an additional 1 million barrel-a-day output cut in July that could be extended further.
The OPEC+ production cuts might put upward pressure on crude prices, but China’s economy is the most important factor for the oil market, said International Energy Agency Executive Director Fatih Birol.
“There are many uncertainties, as usual, when it comes to the oil market, and if I have to pick the most important one it’s China,” Birol said in an interview with Bloomberg TV on Wednesday. “Of more than 2 million barrels a day of growth we expect this year in global oil demand, 60% is set to come from China.”
