Letter from China: Rebounding demand meets economic headwinds

Opec+ and the IEA have both revised up 2023 forecasts for Chinese oil demand in recent weeks

The swift recovery in China’s urban commuter traffic and supply-chain logistics after Beijing abandoned pandemic restrictions two months ago has raised hopes of a strong economic rebound. But the real impact is unlikely to be seen for some time yet. China’s dramatic reopening has been rapid but bumpy, with infections still sweeping the nation. But this year’s week-long Lunar New Year public holiday—which began on 23 January—is unique in that vast swathes of the population are no longer under Covid travel restrictions or lockdowns for the first time since the pandemic began. This relative freedom—combined with major Chinese cities, including Beijing and Shanghai, emerging from peak infections