Sinopec Chairman Says China Oil Demand Peaked in 2025

Chairman Hou Qijun announced during an earnings briefing in Hong Kong that China's oil demand likely peaked in 2025. This shift occurs two years earlier than the company's previous 2027 forecast. Hou attributed the decline to the development of clean energy, low-carbon goals, and increased electrification.

Sinopec reported a plummet in road fuel demand during the first half of the year as consumers shifted toward electric vehicles and reacted to higher prices. These trends align with the Government of China's targets to limit oil and coal consumption by 2030.

To mitigate risks from the Iran War, Sinopec President Wan Tao stated the company is diversifying its crude sources away from the Middle East. Despite the demand peak, the company has maintained steady inventory levels and recently received 11 tankers carrying 2.76 million tons of crude that had been stalled in the Persian Gulf.