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.