A lifting of pandemic lockdowns in China has helped oil demand rise in 2023.

Oil demand forecasters often have to make revisions given changes in the economic outlook and geopolitical uncertainties, which this year included China's lifting of coronavirus lockdowns and rising interest rates.

Although Asian stock markets advanced as easing inflation data fuelled hopes that central banks could be nearing the end of their interest rate hiking cycle, European stocks ended mostly lower.

Oil producers are grappling with falling prices and high market volatility amid the Russian invasion of Ukraine, which has upended economies worldwide.

Opec+ pumps around 40% of the world's crude, meaning its policy decisions can have a major impact on oil prices.

Prices have drawn support from surprise voluntary output cuts by some members of the Organization of the Petroleum Exporting Countries and allies, including Russia announced in April.

Crude futures surged almost 8% at one stage.

Fears of a fresh banking crisis have led investors to sell out of risk assets such as commodities with oil prices falling to near US$70 per barrel from near an all-time high of US$139 in March 2022.

Crude prices have come down over the past year as concerns about a possible recession caused by higher borrowing costs have offset supply worries sparked by sanctions on Russia over its invasion of Ukraine.

The Saudi-led oil cartel expects demand to grow by 2.3 million barrels per day to an average of 101.87 million barrels per day this year.

Oil prices have declined since October due to slower Chinese and global growth and higher interest rates, prompting market speculation the group could cut output again.

Beyond the economic gloom, the big unknown in the oil equation currently is Russian oil, as Western nations seek to decouple themselves from Moscow's energy supplies as fast as possible.