China's Oil Demand Recovers But More Is Needed, Part 2

Please read part 1 of this article published on May 11.

IEA published its latest oil market report today and it made some eye-popping suggestions on where the oil market is headed into year-end.

Source: IEA

In the report, it starts off by saying:

The current market pessimism, however, stands in stark contrast to the tighter market balances we anticipate in the second half of the year, when demand is expected to eclipse supply by almost 2 mb/d.

Touche, IEA, touche. And the culprit for IEA's material imbalance in H2 2023 comes from China's latest demand reading. In part 1 of our article, we noted that OPEC has China's implied oil demand in March surpassing ~15 million b/d. IEA, on the other hand, has China's implied oil demand above ~16 million b/d.