Sinopec Forecasts China’s Energy Future Amid Global Uncertainties

Sinopec anticipates China's petroleum demands will peak by 2027, citing declining diesel and gasoline consumption. The influence of the Trump administration adds uncertainty, especially regarding U.S. sanctions impacting Iranian oil. The shift towards LNG and electric vehicles is reshaping China's energy landscape, diminishing traditional fuel needs.

Sinopec announced that China's petroleum consumption is projected to peak by 2027, driven by weakening diesel and gasoline demand. The state energy giant emphasized that this represents a more precise estimate compared to previous forecasts, setting peak consumption at no more than 800 million metric tons or 16 million barrels per day.

Uncertainty looms over the market due to geopolitical factors, particularly the potential impact of Donald Trump's second term on U.S. sanctions affecting Iran's significant oil exports. Wang Pei from Sinopec highlighted the critical role of U.S. policies as China, Iran's largest oil buyer, braces for potential market shifts.

China's shift towards LNG and electric vehicles is expected to further lessen traditional fuel demands, while the petrochemical sector emerges as a prominent oil consumer. Sinopec's strategies reflect broader energy sector trends and the evolving dynamics of global energy consumption and carbon emissions.

(With inputs from agencies.)