Sinopec Predicts China Oil Demand to Fall 8.9% in 2026 Amid Rising Prices
China's oil demand is expected to decline by 8.9% in 2026, according to Sinopec, the world's top refiner by capacity. This drop is attributed to higher oil prices and accelerated electric vehicle adoption. In particular, gasoline demand is forecast to fall by 8.7%, while diesel consumption is set to crash by 11.4%. However, jet fuel demand is expected to increase by 1.3% this year.
The high oil and fuel prices have accelerated the shift towards EVs in China, which has led to a decline in road transportation fuel demand. Sinopec has managed the Strait of Hormuz crisis better than expected, having slashed its imports of crude oil and temporarily banned fuel exports earlier this year.
To adapt to the changing market, Sinopec is allocating more capital to new energy and chemicals by the end of the decade. This move aims to grow revenues and profits amid falling domestic fuel sales in China, which have been at their lowest level in nearly a decade.