China's oil demand is expected to fall by 600,000 barrels a day in 2026, or 8.9 percent from the previous year, marking a third straight annual decline as high oil prices curbed consumption and electric vehicle adoption accelerated, according to Sinopec's (0386) research arm.
Oil demand destruction, or a long-term drop in consumption, at the world's largest oil importer has been a key factor in capping China's crude imports and global oil prices, despite severe disruption in supplies via the Strait of Hormuz due to the Iran war.
Gasoline and diesel are expected to lead the consumption decline in China at 8.7 percent and 11.4 percent, to 149 million metric tons and 164 million tons respectively. On the other hand, jet fuel demand could rise 1.3 percent on year to 41.55 million tons in 2026, the Sinopec Economics & Development Research Institute said in a report.
While China's refining capacity is expected to rise to 952 million tons per year in 2026, crude processing fell between the second and third quarters to 697 million tons, it added.
Reuters
