Sinopec Forecasts 8.9% Drop in China Oil Demand for 2026
Source Summary
Sinopec, the world's largest refiner by capacity, projects Chinese oil demand will decline 8.9% in 2026 compared to the prior year, driven by demand destruction from higher oil prices and accelerating electric vehicle adoption. The company's research arm estimates oil demand will fall by an average of 600,000 barrels per day this year versus last year, with gasoline demand declining 8.7% and diesel consumption expected to fall sharply.
Why it matters
A significant decline in Chinese oil demand signals a structural shift in the world's largest crude importer toward alternative energy sources, with major implications for global oil markets and refining capacity utilization.
