Chinese oil demand growth poised to slow

Demand prospects are limited by decelerating economic expansion following the post-pandemic rebound

China’s oil demand growth is set to slow after a record increase last year, when transportation and petrochemicals demand bounced back as the Chinese economy reopened. But softer economic growth, the normalisation of travel patterns and the rise of electric vehicles (EVs) mean the post-pandemic gains will likely fade, moderating demand. China’s oil consumption grew faster than expected in 2023, as the lifting of Covid restrictions unleashed pent-up demand for mobility, particularly domestic air travel. Provisional data indicates Chinese oil demand averaged a new high of 16.4m b/d last year, an increase of 1.7m b/d, or 11.6%, from 2022 that accounted for half of global growth over the same pe