Gazprom Neft head expects oil demand to grow in China in H2, demand in Europe, North America cause for concern

NIZHNY NOVGOROD. June 1 (Interfax) - The volume of oil consumption in China in H2 2023 will grow, but there are concerns about the dynamics of oil demand in Europe and North America, Gazprom Neft chief Alexander Dyukov told Interfax.

"The dynamics of oil demand in China also affects the global balance of the oil market and, accordingly, global prices. On the other hand, the situation with oil consumption in the Western countries, the EU countries, and North America has a serious impact on the market. There are expectations of a possible recession in the economies of some Western countries and instability in the banking sector. This puts some pressure on prices," he said.

Dyukov did not assess the impact of the banking crisis in the U.S. on the oil market. "Certainly, investors who operate in the commodity market keep in mind the risks that the North American banking system now carries, but it's quite difficult to specifically assess the extent of this impact in dollars per barrel," he said.