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The world may see a shortage of crude oil in the second half of 2023 due to increased demand from China and a further output cutback by Russia.

Renewed China energy demand threatens to fuel global inflation

Crude oil seen topping $100 a barrel this year as Chinese economy picks up

MISA HAMA and IORI KAWATE, Nikkei staff writers | China

TOKYO/BEIJING -- China's appetite for energy is roaring back as its economy recovers from a downturn caused by its draconian zero-COVID policy. Many pundits are worried that a surge in China's imports of crude oil and other energy resources could push those prices higher, fueling inflation worldwide.

"Mobility data over the Lunar New Year holiday are already showing signs of a sharp pickup in travel [by Chinese]," said UBS Global Wealth Management in a report published earlier this month. Given strong demand for gasoline and jet fuel in China, the world's leading wealth manager expects West Texas Intermediate crude futures to hit $107 per barrel this year, lower than last year's high of $130 but 40% higher than the current level.

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