China's electrification means oil sector has likely peaked

retained text

The rapid electrification of China’s transportation sector means that oil demand in the country probably peaked in 2025, Sinopec chairman Hou Qijun said. Sinopec, the world’s largest oil refiner, posted a surge in profit for the first half of the year, reaching nearly $4 billion despite the company’s heavy reliance on crude from the Persian Gulf.
The Chinese state-owned company processed less oil than it did during the same period last year, but was able to capture a much higher refining margin as fuel prices surged. There could be a slowdown ahead, however, and not just because of the war: China’s oil demand has been structurally reduced by the energy transition and “very likely” peaked two years earlier than government forecasts, Hou said.

document fetched 2026-08-26 05:58 · canonical https://semafor.com/article/08/25/2026/chinas-electrification-means-oil-sector-has-likely-peaked