Global oil prices may rebound to about $100 per barrel in the second half this year as Chinese demand recovers while supply remains limited, Iran’s OPEC representative Afshin Javan said on Wednesday.

His comments come after the International Energy Agency flagged China’s demand recovery earlier in the week.

“I think OPEC is moving in right direction,” Javan told reporters on the sidelines of the India Energy Week, referring to the group’s decision in December to cut production.

OPEC+, an alliance that includes members of the Organization of Petroleum Exporting Countries (OPEC) and others including Russia, agreed last year to cut its production target by 2 million barrels a day (bpd), about 2% of world demand, from November until the end of 2023 to support the market.

“Why OPEC did it was because it was not very optimistic about the demand side,” Javan said.

China will need more oil after its reopening and tighten supplies again, he added.

Iran is a member of the Organization of the Petroleum Exporting Countries (OPEC) although its oil exports are subjected to U.S. sanctions aimed at curbing Tehran’s nuclear programme.

On Monday, OPEC Secretary General Haitham Al Ghais also defended the group’s decision to cut production, adding that the move helped stabilise global oil markets.
Source: Reuters (Reporting by Nidhi Verma; writing by Florence Tan; editing by Krishna N. Das and Jason Neely)