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High oil prices cut China’s oil consumption, boosting EV and rail use
China’s oil demand fell 9% year over year in the second quarter, while EVs displaced 19 million tons of oil in that quarter alone.
China’s oil consumption declined 9% year over year in the second quarter as high crude prices pushed greater use of electric cars, trucks, rail and industrial equipment, according to an analysis cited by OilPrice.
The lower oil use helped cut China’s carbon dioxide emissions by 1% during the quarter, marking the first quarterly emissions decline in China driven primarily by reduced oil consumption, while power-sector emissions rose 3% as coal-fired generation increased.
OilPrice also linked the shift to supply disruptions after the Iran war, which raised crude prices by disrupting Persian Gulf supply and traffic through the Strait of Hormuz. The article says China reduced crude imports and relied more on inventories as EVs and electric trucks displaced oil consumption and alternative fuel use accelerated in trucking.
It also reported that electric vehicles displaced 36 million metric tons of oil during the first half of 2026, roughly one-third of the reduction in Chinese oil demand, and that alternative-fuel use in trucking jumped 90% year over year between January and June.
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