Speaking to CNBC, Sen predicted that the economy will show "green shoots" from March onwards and throughout Q2. This will point to much better global growth in the second half of 2023 as demand for oil will surge after China reopens.
"Right now, COVID is rampant but once they come out of it, demand is going to be huge," she said of China.
The Energy Aspects founder also noted that Russia might have to cut production early next year, which will add a supply pinch to the demand surge expected from China.
Sen added that China's reopening will have multiplier effects on demand by contributing to oil needs in other countries as well. Specifically, she noted that 25% of Korea's petrochemical exports depends on China, 20% of Thailand's tourism depends on China and, in the U.S., 70% of the international flights on the west coast are linked to Asia-Pacific.
With huge amounts of SPR releases from governments around the world, particularly the U.S., and lockdowns in China, there has been "a lot of year end liquidation," Sen reported.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
👍