China's Fuel Demand: A Peak in the Past?

The International Energy Agency (IEA) reported a decline in China's demand for road and air transport fuels, suggesting that the country's consumption of gasoline, gasoil, and jet fuel has peaked. This shift, driven by economic challenges and a rise in electric vehicles, marks a potential plateau in China's overall oil demand.

The International Energy Agency (IEA) announced on Thursday that China's demand for road and air transport fuels might have reached its peak, as recent data indicates a slight decline in its consumption of key fuels.

According to the IEA's monthly report, the combined fuel consumption in China during the previous year was 8.1 million barrels per day, which was 200,000 barrels per day lower than in 2021, and marginally above 2019's figures. This suggests a stagnation or potential decline in fuel usage.

The anticipated plateau in China's oil demand growth is linked to economic challenges and an increasing shift toward electric vehicles, which could further curb fuel demand in the years to come, the IEA noted.