$100 oil unlikely to dent Asian demand in short term: analysts

China and India expected to keep buying in part thanks to 'sanctions discount'

China's first single-series 10-million-ton refinery is in Qingdao, Shandong province. The country is a major producer and importer of crude oil. © Getty Images

NESREEN BAKHEIT, Nikkei staff writer

September 27, 2023 11:34 JST

Dubai, UAE -- Asia's appetite for oil is unlikely to falter even if benchmark prices hit $100 per barrel, according to analysts, as China and India continue to feed much of their demand with cheaper, sanctioned options.

Early this month, oil prices rose above $90 per barrel for the first time in 2023 as Saudi Arabia and Russia announced they would extend voluntary production and export cuts until the end of the year. Analysts expect the price of the benchmark Brent crude will remain around the current level for some time.