Sinopec Says China Oil Demand 'Very Likely' Peaked in 2025
China's leading refiner indicates that domestic oil consumption may have reached its summit in 2023, driven by a rapid shift toward electric vehicles and renewable energy sources.
The head of China's largest refining firm, Sinopec, believes the nation's oil requirements likely reached their highest point last year. According to reporting from Rigzone, this assessment moves the projected timeline forward from earlier estimates that suggested a peak would occur in 2027. The shift is attributed to the country's aggressive pursuit of low-carbon objectives and the widespread adoption of cleaner power alternatives.
During an earnings meeting in Hong Kong, Chairman Hou Qijun noted that even if geopolitical tensions in the Middle East subside, consumption is unlikely to return to the levels seen in the previous year. Hou stated that it is "very likely demand peaked last year" despite previous government targets that aimed for a peak within the current five-year plan ending in 2030. This change poses new questions for global crude producers.
Sinopec executives highlighted a significant drop in road fuel usage during the first half of the year, citing high costs and the transition to electric transport. While economic stimulus may temper these declines in the coming months, the company is prioritizing domestic supply stability. The firm has successfully rerouted millions of tons of crude to avoid regional conflicts and maintains a steady inventory for both refining and marketing needs.
Editorial Desk — Trade Flow Insight. Reporting and market notes compiled by the Trade Flow Insight editorial team.
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