Oil rallied in the first half of 2022, peaking on June 14 at $123.68 Commodity reduced its profit in the second half, but ended the year up around 7% in contrast to the losses suffered by most other asset classes.

The commodity’s gain supported the bottom line of oil companies such as ExxonMobil Corp. XOM, chevron corp CVX And Occidental Petroleum Corp. OXY.

Although oil has traded subdued so far, things could be looking up for the commodity in the near future, according to a private research report.

What happened: Oil is a big winner from China’s reopening, boosting global demand for energy and metals, said Wood Mackenzie, a global research, analytics and advisory firm.

See also: Banking volatility spills over into the oil market: what investors need to know

The company said most demand growth, even in a baseline scenario, is based on a return to normal Chinese mobility.

“Even higher Chinese demand equals even higher prices.”

The company estimates that China’s consumption alone could account for 1 million barrels per day of the 2.6 mb/d increase in 2023.

China’s reopening, the company said, would mean there will be no hard landing in 2023. It expects international oil companies to post a crescendo of quarterly earnings throughout the year when oil prices rise.

Oil demand in Europe and the US is also likely to remain robust despite slowing economic growth, it said.

Barring a significant recession, Wood Mackenzie estimates that the price of Brent crude will rise to $89.50 a barrel in 2023, up 17% from current levels. Assuming a similar percentage price increase for WTI grade crude, which is light sweet oil sold in the US, oil prices will rise to $83 a barrel from just over $70 currently.

See also: The best crude oil stocks

Why it matters: For 2022, Exxon Mobil made $55.74 billion on a GAAP basis, up 32.7%. Meanwhile, Chevron’s net income more than doubled to $35.46 billion from $15.63 billion.