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China’s EV ramp reduces oil demand at a critical supply chokepoint

With China’s electrifying transport system already displacing about 1.35 million barrels per day of crude-equivalent oil demand in the first half of 2026, the impact of slower Gulf transit becomes smaller than many assume.

Reported · Written up by our desk · Energy

OilPrice highlights the risk for China from a disruption around the Strait of Hormuz, citing estimates that 45% to 50% of Chinese crude imports normally transit the chokepoint. The outlet says traffic slowdowns would leave Beijing unable to replace all barrels overnight, which is a real vulnerability.

Still, OilPrice argues that the traditional framing is incomplete because China entered the kind of supply shock described with large strategic and commercial inventories, diversified suppliers, and the ability to suppress refinery runs. The outlet also points to a new offset, China’s rapidly electrifying transport system.

According to OilPrice, China’s electric vehicle fleet displaced an estimated 34 million tonnes of oil in the first half of 2026, equivalent to about 1.35 million barrels per day in crude-equivalent terms. The piece adds that this displaced volume is roughly 6% of a full year of Chinese crude imports for that six-month period, and could approach around 12% if sustained for the full year.

OilPrice concludes that while the Hormuz vulnerability remains, the EV-driven reduction in potential oil demand changes the magnitude of the constraint compared with earlier oil-importing economies facing supply shocks.

Latest closeWTI crude $75.12 ▼0.9%

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