Oil & Gas

China's oil market is closely monitored by energy experts, not only because of its size but also due to the ongoing electric vehicle (EV) revolution. Despite the EV boom, which is expected to displace a significant amount of oil demand, especially in road fuel, China's oil demand growth is being driven by another sector: petrochemicals. The International Energy Agency (IEA) reports that 90% of China's increased oil demand from 2021 to 2024 will come from chemical feedstocks like LPG, ethane, and naphtha.

This shift is partly due to the onshoring of China's petrochemicals sector, with new private refiners such as Hengli Petrochemical and Rongsheng Petrochemical investing in chemical plants. This move towards petrochemicals is expected to continue driving China's oil demand growth, with significant implications for emissions and climate change. Despite the EV boom, China's economy has started the year positively, with growth in the manufacturing and service sectors, indicating continued demand for oil.