China's Waning Appetite for Oil Keeps Emissions in Check
China's oil consumption has seen a significant decline in the second quarter of 2026, driven by a 16% slump in the transport sector. The country's crude oil processing dropped 11%, with electric vehicles being a major beneficiary as gasoline and diesel became more expensive.
According to the Centre for Research on Energy and Clean Air, China's oil consumption fell 9% year-on-year in the second quarter of 2026. This decline helped trim total emissions by 1%, marking the first time that oil rather than coal has been responsible for a drop in China.
Lauri Myllyvirta, lead analyst at CREA, said, 'The rise in oil prices has caused a stronger shift in China's transportation sector than anyone anticipated, with EV deployment and use accelerating from an already high base.' The government's drive to electrify the economy is upending calculations on energy demand.