Sinopec: China's Oil Demand Peaked in 2025 Amid Rapid EV Adoption

Key Facts

1Sinopec Chairman stated that China's oil demand likely peaked last year, earlier than previous 2027 forecasts.

2The company attributed the demand peak to clean energy development, EV adoption, and low-carbon goals.

3Sinopec reported a sharp decline in road fuel demand during the first half of 2026.

In a move reflecting a structural shift in global energy markets, the Chairman of Sinopec stated that China's oil demand likely reached its peak in 2025. This announcement moves up the timeline from previous forecasts of a 2027 peak, signaling a faster-than-anticipated slowdown in consumption from the world's largest crude importer. According to reports, the company experienced a sharp decline in road fuel demand during the first half of 2026, placing long-term downward pressure on price outlooks.

Sinopec attributes this structural decline to the rapid development of clean energy, the widespread adoption of electric vehicles (EVs), and national low-carbon objectives. Per market data, Sinopec shares (0386.HK) closed at 4.67 HKD on August 24, 2026, trading between a day low of 4.43 HKD and a high of 4.68 HKD. These movements reflect investor reaction to weakening domestic demand in China, despite the company's efforts to diversify crude sources away from the Middle East.

Looking ahead, traders are monitoring support levels for 0386.HK near its recent low of 4.43 HKD (as of August 24, 2026 close). Regarding economic catalysts, recent data from August 18, 2026, showed a decline in US API Crude Oil Stocks by 3.28 million barrels, which may provide temporary support to global oil prices against the backdrop of bearish long-term Chinese demand forecasts.

Sources:

zerohedge.com