China's Oil Demand Hits Historic High Ahead of Schedule
Sinopec, China's state-owned energy giant, has announced that the country's oil demand has likely peaked ahead of schedule. According to Chairman Hou Qijun, the shift to electric vehicles and cleaner energy has driven demand over the top sooner than expected.
In an earnings call in Hong Kong on Monday, Sinopec revealed that it had previously predicted oil use would peak in 2027 but now believes the summit came last year. The company cited the push for clean energy development, electrification of vehicles, and low-carbon goals as the main factors contributing to this shift.
Sinopec's earnings report showed a sharp decline in road fuel demand in the first half of the year due to higher prices and increased adoption of electric cars. While the company expects this decline to ease slightly in the second half thanks to supportive economic policies, Hou stated that even if the US-Iran conflict cools down next year, demand might recover somewhat but won't climb back to last year's level.