Oil Daily | China's Oil Demand Decline Sharpens Amid EV Shift; Major Players Adjust Strategies
Tuesday, Sep 10, 2024 8:00 am ET
2min read 【Global Oil Supply and Demand】
China's oil product demand peaked last year and is set to drop by 1.1% annually through 2025. The decline is expected to accelerate later this decade, with demand falling by 2.7% annually from 2025 to 2030 and by 3.2% from 2030 to 2035.
Chinese oil demand growth has slowed due to weaker economic performance and a shift to electric vehicles and LNG-fueled trucks. Diesel demand has suffered recently from the ongoing property crisis and lackluster economic growth.
Vitol Group expects gasoline demand in China to peak either this year or next due to the gradual shift towards electric vehicles. The group also sees weakening diesel demand due to the electrification of transport and increased use of LNG for trucking.
Gunvor Group traded a record volume of 79 million tons of crude and petroleum products in the first half of 2024, driven by increased deals from the U.S. Gunvor expects oil demand to grow by only 1 million barrels per day this year, much slower than previously anticipated.
China Petroleum & Chemical Corporation (Sinopec) expects oil demand in China to peak before 2027 due to rapid EV adoption. This year, weaker-than-expected road fuel demand, particularly diesel, has been noted due to the property crisis and a shift to LNG-powered trucks.
【Latest Oil Policies】
Oil and gas production in the Gulf of Mexico could decline unless the federal government confirms the deadline for revising a law regulating endangered species protection. The American Petroleum Institute warns that delays could disrupt essential operations.
【Industry News】
Italy's power utility Enel has exited Vietnam’s wind and solar markets due to broader company reorganization. Norway's Equinor and wind turbine major Orsted have also scrapped or paused their plans in Vietnam due to regulatory challenges.
Indonesia is awaiting a large part of the $20 billion funding promised by wealthy nations to facilitate its move away from coal. The country seeks below-market interest rates to finance its reduction of coal power use to achieve net-zero emissions in the power sector by 2050.
【Company News】
Oil and gas giants Chevron, Exxon Mobil, and Shell have evacuated staff and paused operations on oil platforms in the U.S. Gulf of Mexico ahead of an expected hurricane. The hurricane is expected to bring heavy rainfall and considerable flash flooding.
The number of people in the U.S. willing to buy an electric vehicle has fallen by 14% since last year. Concerns about battery longevity and charger availability are prominent deterrents.
At least 48 people have been killed in Nigeria following a fuel tanker truck explosion. The country relies on imports for most of its fuel needs due to inadequate refining capacity, although the new Dangote Refinery is expected to meet domestic demand.
Oil and gas multinationals are exiting the Nigerian market despite the Petroleum Industry Act (PIA) 2021 encouraging exploration. Companies like Equinor and Addax have sold their stakes, while oil majors face challenges from local entities.
China's oil product demand peaked last year and is set to drop by 1.1% annually through 2025. The decline is expected to accelerate later this decade, with demand falling by 2.7% annually from 2025 to 2030 and by 3.2% from 2030 to 2035.
Chinese oil demand growth has slowed due to weaker economic performance and a shift to electric vehicles and LNG-fueled trucks. Diesel demand has suffered recently from the ongoing property crisis and lackluster economic growth.
Vitol Group expects gasoline demand in China to peak either this year or next due to the gradual shift towards electric vehicles. The group also sees weakening diesel demand due to the electrification of transport and increased use of LNG for trucking.
Gunvor Group traded a record volume of 79 million tons of crude and petroleum products in the first half of 2024, driven by increased deals from the U.S. Gunvor expects oil demand to grow by only 1 million barrels per day this year, much slower than previously anticipated.
China Petroleum & Chemical Corporation (Sinopec) expects oil demand in China to peak before 2027 due to rapid EV adoption. This year, weaker-than-expected road fuel demand, particularly diesel, has been noted due to the property crisis and a shift to LNG-powered trucks.
【Latest Oil Policies】
Oil and gas production in the Gulf of Mexico could decline unless the federal government confirms the deadline for revising a law regulating endangered species protection. The American Petroleum Institute warns that delays could disrupt essential operations.
【Industry News】
Italy's power utility Enel has exited Vietnam’s wind and solar markets due to broader company reorganization. Norway's Equinor and wind turbine major Orsted have also scrapped or paused their plans in Vietnam due to regulatory challenges.
Indonesia is awaiting a large part of the $20 billion funding promised by wealthy nations to facilitate its move away from coal. The country seeks below-market interest rates to finance its reduction of coal power use to achieve net-zero emissions in the power sector by 2050.
【Company News】
Oil and gas giants Chevron, Exxon Mobil, and Shell have evacuated staff and paused operations on oil platforms in the U.S. Gulf of Mexico ahead of an expected hurricane. The hurricane is expected to bring heavy rainfall and considerable flash flooding.
The number of people in the U.S. willing to buy an electric vehicle has fallen by 14% since last year. Concerns about battery longevity and charger availability are prominent deterrents.
At least 48 people have been killed in Nigeria following a fuel tanker truck explosion. The country relies on imports for most of its fuel needs due to inadequate refining capacity, although the new Dangote Refinery is expected to meet domestic demand.
Oil and gas multinationals are exiting the Nigerian market despite the Petroleum Industry Act (PIA) 2021 encouraging exploration. Companies like Equinor and Addax have sold their stakes, while oil majors face challenges from local entities.
