2023 Oil Outlook: China’s Reopening Signals Return Of Bull Market

2023 Oil Outlook: China’s Reopening Signals Return Of Bull Market

Share to Linkedin TOPSHOT - People sing slogans while gathering on a street in Shanghai on November 27, 2022, where ... [+] protests against China's zero-Covid policy took place the night before following a deadly fire in Urumqi, the capital of the Xinjiang region. (Photo by Hector RETAMAL / AFP) (Photo by HECTOR RETAMAL/AFP via Getty Images) Rising oil prices as 2022 draws to a close signal a return to bull market conditions next year, with oil expected to cost over $100 a barrel as China eases Covid-related restrictions and supply remains at risk due to Russian aggression against Ukraine. Concerns about the economy and the potential for a global recession continue to be a brake on prices, but the continued tightness of oil supplies trumps those worries. Current production numbers will be hard-pressed to keep up with consumption as the Chinese government – the world's biggest oil importer – lifts its zero-Covid policy. Oil markets remain volatile, but weak demand seems the least of its worries. It's hard to see crude prices dropping below $80 a barrel for any extended period in 2023. There are too many factors pointing to a sizable breakout in oil prices. It starts with