China’s crude oil imports are on track to peak as soon as next year as transport fuel demand begins to decline for the world’s top crude buyer, ending the country’s decades-long run as the dominant driver of expanding oil consumption.
The speed of its transition to electric mobility has stunned oil producers and investors. No single market is positioned to replace Chinese demand, which has made up 41% of annual global oil consumption growth averaging 1.1 million barrels per day (bpd) over the past three decades, according to the Statistical Review of World Energy.
EV and hybrid sales in China topped combustion engine vehicle sales for the first time in July, eating into China’s need to import crude for refiners to make gasoline, with prolonged economic weakness also slowing overall oil consumption.
The views and opinions expressed are those of the author’s and do not necessarily reflect the official policy or position of C3.
