China's Electric Vehicle Surge Defies Oil Price Expectations
The turmoil in the Middle East was expected to send oil prices soaring above US$200 a barrel. But despite fears of a global oil shock, prices remained relatively subdued.
A key factor behind this stability is China's changing energy habits. The country's rapid adoption of electric vehicles and reduced crude imports have significantly altered its demand for oil.
According to the General Administration of Customs, China's crude imports averaged 8.1 million barrels a day during the second quarter of 2026, down 32% from the previous quarter. This reduction in demand helped cushion against price swings and was not expected by many analysts.
Rapid growth in electric vehicles is reducing China's dependence on crude oil at an unprecedented rate. In the first half of 2026, electric vehicles displaced an estimated 1.4 million barrels of oil a day, equivalent to 33.7 million tonnes of oil equivalent. This figure was only about 500,000 barrels a day three years earlier.
The International Energy Agency estimates that electric vehicles will displace 2.7 million barrels of oil a day in China by 2030.