China's Oil Demand Peaks Ahead of Schedule

China's oil demand has likely peaked, according to Sinopec, the country's state-owned energy giant. This is earlier than previously predicted, with the company now expecting the high-water mark to have been reached last year.

The shift towards electric vehicles and cleaner energy is driving this change, with China pushing hard on clean energy development, electrification of its vehicle fleet, and low-carbon goals. Sinopec's earnings report showed road fuel demand dropped sharply in the first half of the year due to higher prices and increased adoption of electric cars.

Even if the US-Iran conflict cools down next year, Hou Qijun, Sinopec's chairman, believes that demand might recover somewhat but won't climb back to last year's level. The company is working to diversify its crude imports away from the Middle East and coordinating with suppliers on shipping routes that avoid the dangers of the Iran War.