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Sinopec expects China oil demand to fall 8.9% in 2026

Sinopec also projects gasoline demand down 8.7% and diesel consumption down 11.4% as high oil prices and faster EV adoption weigh on road fuel use.

Reported · Written up by our desk · Energy

China’s Sinopec expects Chinese oil demand to drop 8.9% in 2026 from the prior year, citing demand destruction tied to higher oil prices and the acceleration of electric vehicle adoption, according to Sinopec’s research arm as quoted by Reuters.

Sinopec also estimates that China, the world’s biggest crude importer, will see oil demand fall by 600,000 barrels per day on average this year versus last year. Gasoline demand is forecast to decline 8.7%, while diesel consumption is expected to drop 11.4%.

The outlook shows jet fuel as a relative bright spot, with demand projected to rise 1.3% in 2026 compared with 2025. OilPrice notes that the higher oil and fuel prices amid the Iran war have sped up the structural shift toward EVs, suppressing total road transportation fuel demand.

With road fuel demand falling, Sinopec plans to transform its business and allocate more capital to new energy and chemicals, OilPrice reported.

Latest closeWTI crude $94.28 ▲3.1%|Gasoline (RBOB) $3.095 ▼3.7%

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