By Noah Browning
LONDON, Feb 15 (Reuters) – China will account for nearly half of oil demand growth this year after easing its COVID-19 restrictions, the International Energy Agency (IEA) said on Wednesday. , but the OPEC+ production lockdown could mean a supply shortfall in the second half.
“OPEC+ supply is set to contract as Russia comes under sanctions pressure,” the Paris-based agency said in its monthly oil report.
“Global oil supply is expected to exceed demand in the first half of 2023, but the balance could quickly turn into a deficit as demand recovers and some Russian production shuts down.”
International sanctions against Russia, aimed at depriving it of funds after invading Ukraine, have so far had little impact on its oil exports, which in January fell by just 160,000 barrels a day (bpd) compared to pre-war levels.
However, according to the IEA, by the end of the first quarter, production of around 1 million barrels per day will have been shut down, due to the European ban on maritime imports and international price cap sanctions. (Reporting by Noah Browning; Editing in Spanish by Ricardo Figueroa)