Shafaqna English– Sinopec’s research arm forecasts that China’s oil demand will fall by 600,000 barrels per day, or 8.9%, in 2026, marking a third straight annual decline, with refining capacity expected to shrink by up to 5.5% from 2026 levels by 2030.
The ongoing destruction of oil demand — a long-term consumption drop — in the world’s biggest oil importer has been pivotal in capping both China’s crude imports and global oil prices, despite severe supply disruptions through the Strait of Hormuz caused by the Iran war.
Gasoline and diesel are expected to lead the consumption decline in China, dropping 8.7% and 11.4% to 149 million metric tons and 164 million tons, respectively, in 2026. Meanwhile, jet fuel demand could rise 1.3% year on year to 41.55 million tons in 2026, according to a report by the Sinopec Economics & Development Research Institute.
Source: Reuters