China Fuel Demand Under Pressure as Pricier Oil Adds to EV Push

China’s gasoline demand is expected to decline further this year as the Iran war lifts oil prices and adds pressure to already weakening fuel consumption. The article points to a longer-term structural shift away from internal combustion engines, which is reducing gasoline demand in the world’s largest auto market. The near-term implication is bearish for refined fuel demand and supportive for oil prices.

Analysis

China’s gasoline demand is expected to decline further this year as the Iran war lifts oil prices and adds pressure to already weakening fuel consumption. The article points to a longer-term structural shift away from internal combustion engines, which is reducing gasoline demand in the world’s largest auto market. The near-term implication is bearish for refined fuel demand and supportive for oil prices.