Sinopec Sees China Oil Demand Falling 8.9% in 2026

Sinopec, the world's largest refiner by capacity, anticipates a 8.9% decline in Chinese oil demand by 2026 compared to last year. This drop is attributed to increased oil prices and the rapid growth of electric vehicle adoption. The country, being the largest crude oil importer, is forecasted to see an average decrease of 600,000 barrels per day (bpd) in oil demand this year, as per Sinopec's research institute.

Gasoline consumption is expected to fall by 8.7%, while diesel use is predicted to plummet by 11.4%. The only petroleum product with an anticipated increase is jet fuel, which is projected to rise by 1.3%. The surge in oil and fuel prices due to the Iran conflict has hastened the transition towards electric vehicles, thereby reducing road transportation fuel demand.

Despite the Strait of Hormuz crisis, China managed to cut its crude oil imports and temporarily suspend fuel exports in the spring and early summer. Sinopec is planning to invest more in new energy and chemicals by the end of the decade to boost revenues and profits amid the lowest domestic fuel sales in nearly a decade.