Chinese energy demand gets back on track

The signs point towards a comeback in 2023, but uncertainty around Covid remains a factor

China’s energy markets look set for a year of reset and normalisation after a tumultuous 12 months of struggling to balance economic growth with Covid containment. And a surprisingly strong final quarter last year has generated optimism that the country’s reopening can support global oil demand. Chinese demand for oil declined by c.500,000bl/d, or 3pc, last year compared with 2021, representing the biggest annual drop since the 1980s. A rebound in the country’s appetite will likely be key for the global market in 2023, as Beijing’s abrupt abandonment of zero-Covid in December paves the way for a faster-than-expected reopening by the second quarter. With recession risks mounting for the US an