A combination of geopolitics, economics, and production factors will create much tighter market conditions, especially in the second half of 2023. Potentially rising costs for households and businesses have increased the fiscal burden on consumer economies.
- As China had a faster-than-expected economic recovery following the zero-Covid policy exit and the US recession will only be slight crude oil demand is expected to grow and expose an acute lack of new supply.
- In the absence of cheap Russian supplies, many countries including the US and the EU will need to rebuild gas storage and markets.
- Until the markets for gas and oil can be built back up, it will put a strain on countries and individuals throughout the year.