China's oil demand will grow by 3.4 percent year on year in 2013, global banking giant Deutsche Bank (DB) forecast in its latest report.

Although the growth will be modest compared to previous years, it will make China the largest contributor to global oil demand on a growth basis, equal to 40 percent, the report said.

China's oil demand growth in 2012 was its slowest in ten years. However, the report predicted that an expected improvement in economic growth prospects for next year indicates an improving oil demand picture in China.

DB said China's GDP growth should return to 8.5 percent in the second half of next year, bolstered by corporate investment and accelerated exports.

The report said China is expected to bring two new strategic petroleum reserve (SPR) sites online in south China's Guizhou province, as well as another SPR site in east China's Qingdao province.