Oil Prices React to Tightening Market and Demand Concerns

Oil prices rose as estimates of continued drawdowns in US inventories and the International Energy Agency's bullish outlook for demand gave oil markets a boost. However, concerns over the health of the US economy and China's weaker-than-expected recovery are still weighing on oil markets. The IEA upgraded its global oil demand growth estimate after finding that China's recovery continues to exceed expectations, and that China's oil demand hit a record high of 16 million bpd in March 2023.