China's Oil Consumption Drops 9% as EVs Speed Up Crude Displacement

China's oil consumption dropped by 9% in the second quarter of this year, marking a significant shift towards cleaner energy sources. The decline is attributed to the rising cost of crude oil, which has accelerated the adoption of electric vehicles and equipment.

The Centre for Research on Energy and Clean Air estimates that electric vehicles displaced 36 million metric tons of oil during the first half of the year, accounting for roughly one-third of the reduction in Chinese oil demand. This is a significant development, as China remains the world's largest crude importer.

Electric trucks were found to be particularly effective in reducing diesel consumption, with alternative-fuel use increasing by 90% year over year between January and June. This trend is expected to continue, with CREA predicting that Chinese emissions could fall for the full year due to weakening oil demand and reduced property activity.