The Organization of the Petroleum Exporting Countries has ”cautiously optimistic” outlook on the global economy, which is showing signs of improvement with increased oil demand from China, even if this positive trend is bogged down by other factors.

So says OPEC Secretary General Haitham Al-Ghais during the World Economic Forum in Davos, according to Bloomberg News.

OPEC sees signs of improvement following the Chinese government’s decision to relax tough Covid-19 restrictions.

”We are optimistic, but we are cautiously optimistic,” the OPEC chief says.

2023 started off with substantial oil price drops, though the prices have since leveled out at USD 84.85 for a barrel of European benchmark crude Brent – slightly down from USD 85.91 per barrel on the last day of trading in 2022.

On one hand, oil prices have been buoyed by surging demand related to China’s gradual reopening after several years of extensive and unyielding lockdown measures. Conversely, the reopening has led to major disease outbreaks which have dented demand.

In 2022, OPEC and allies in OPEC+, which includes Russia, opted to lower oil output with a view to raising prices. This year, the cartel is determined to do ”whatever it takes” to maintain balance in crude markets.

The organization is set to convene on Feb. 1 to discuss the market situation. It is still too early to determine whether OPEC+ plans a change in policy.

Right now, Western trends comprise a negative impact for oil prices, though offset by growth in Asia, explains Al-Ghais.

He further relates that it is too soon to assess whether sanctions imposed on Russian oil exports by Western nations will require a response from OPEC in the shape of increased production.