By Tsvetana Paraskova of OilPrice.com
China, the world’s largest importer of crude oil, may see its oil demand peak as early as next year. This shift is driven by the increasing adoption of electric vehicles and LNG trucks, according to a report by the state-owned China National Petroleum Corporation (CNPC).
Last year, CNPC predicted that China’s oil demand would peak by 2030. However, with the rapid growth of EVs and LNG-fueled trucks displacing traditional gasoline and diesel vehicles, the peak in oil demand could occur as soon as 2025, five years earlier than previously expected.
Industry executives attribute the slowdown in China’s oil demand growth to a combination of factors, including weaker economic performance and the transition to cleaner transport options. The shift towards EVs and LNG trucks is projected to permanently reduce road fuel demand in the country.
Vitol Group’s CEO Russell Hardy believes that China’s gasoline demand could peak this year or the next, as the country’s vehicle fleet gradually transitions to electric vehicles. This shift is part of a broader global trend towards cleaner energy sources, which has led Vitol to adjust its timeline for peak oil demand beyond 2030.
The rise of electric vehicles and the increased use of LNG in trucking have contributed to the slowdown in China’s oil demand growth. This trend, combined with economic factors, has challenged earlier forecasts of global oil demand for this year.
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